UCC Lawyers Refute Claims Of Leaked Bids for Celsius Crypto Assets
Lawyers deny claims that bids for Celsius's crypto assets have been rejected
Celsius's creditor committee's attorneys say that bids have not been rejected, but the process is being kept confidential for negotiation purposes.
A recent Twitter Space named “town hall” saw lawyers from White & Case LLP, Gregory Pesce, and Aaron Colodny, refute claims that the bids for Celsius’ crypto assets were mostly abandoned.
To provide some context to the issue, recently a blogger named Tiffany Fong had written about this in a post in her blog on Jan 27, saying that five companies were interested in buying Celsius’s crypto assets, including Binance, Bank To The Future, Galaxy Digital, Cumberland DRW, and NovaWulf. The lawyers denied these claims during the town hall.
Fong had previously stated that the bids were “for the most part, abandoned,” citing a statement from a Celsius lawyer who proclaimed the bids they received so far “have not been compelling.”
However, Pesce and Colodny, representing the Celsius Official Committee of Unsecured Creditors (UCC), denied this claim and stated that the bids have not been rejected.
“The assertion that the bids have been rejected is just categorically false,” said Pesce. “Every day, we and the debtors are providing public messages and private messages to potential investors about where they stand in the process.” The UCC lawyers are now investigating the leak and aim to choose a path and bring the bankruptcy to a close as quickly as possible.
UCC Lawyers Speak Out
The UCC lawyers also made comments in light of the recent examiner’s report on Celsius. “Mr. Mashinsky and many members of his team did wrong. They put themselves ahead of the company and its account holders,” said Colodny. The UCC is exploring options for recovery, including becoming a publicly-traded recovery corporation, selling off some of its mining equipment, winding down Celsius or transferring crypto to a third party.
The leaking of the bids has caused concern, with the UCC lawyers stating that there is a potential for manipulation by an investor involved in the process. Fong has responded to the accusation, claiming that the leaked bids were 100% free and not behind a paywall. Despite the controversy surrounding the leak, the UCC lawyers remain committed to finding the best outcome for Celsius account holders.