The expert announced the shortcomings of accounting and operational control with Celsius
The bankrupt Celsius platform could not establish sufficient records and operational control for handling clients. This was stated by an independent expert Nod Pillai.
In an intermediate report for the court, the specialist noted that critical shortcomings relate to the product Celsius Custody. The decision launched in April replaced the Earn program for American users. There were claims to the latter with regulators.
“No efforts were made to separate or separate identification of assets related to accounts that were mixed in the main wallets,” the expert said.
According to Pilla, this allowed the company to finance the deficit of depository wallets at the expense of other means.
“As a result, customers are now faced with the uncertainty, what assets belonged to them at the time of filing a bankruptcy application,” he said.
The expert also drew attention to the time that probably forced the cryptolending platform on June 13 to suspend the withdrawal of funds. According to him, on June 11, client wallets were faced with underfunding. By June 24, a deficit of assets increased by 24% – to $ 50.5 million.
Pillai also noted other shortcomings of accounting with Celsius. For example, the company founded the company in 2017 by Alex Mashinsky and Daniel Leon began to track the balance of the platform only after the first claims of the supervisory authorities in May 2021. At the same time, they used the Google Sheets service for accounting, the expert noted.
The bankruptcy court has already established the deadline until January 3, 2023, in which the company’s customers must file a claim to claim the reimbursement of funds.
Celsius specified that in case of consent with the schedule established by the court, users do not need to provide evidence for a claim and perform other additional actions.
The next meeting in the bankruptcy case of the company is scheduled for December https://gagarin.news/ 5. The platform intends to “continue discussing issues around Custody’s accounts and the main wallets”.
Recall that in October, the court approved the plan of the Celsius Assets trading procedure. Auctions can be completed before the end of the year.
The company filed an application for additional time to develop measures to reorganize business.
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