The counsel representing Celsius’ official creditor committee has denied assertions that the bids for Celsius’ crypto property have been rejected.
Throughout a Jan. 31 Twitter Area “town hall” following the examiner’s report on Celsius, attorneys from White & Case LLP together with Gregory Pesce and Aaron Colodny addressed the so-called “leaked” bids for Celsius’ crypto property shared by crypto blogger Tiffany Fong.
“The assertion that the bids have been rejected is just categorically false,” stated Pesce.
— Celsius Official Committee of Unsecured Collectors (@CelsiusUcc) January 31, 2023
Fong’s Jan. 27 put up on Substack pointed to at least five firms that had been reportedly fascinated by bidding on Celsius’ crypto property together with Binance, Financial institution To The Future, Galaxy Digital, crypto buying and selling firm Cumberland DRW and digital asset funding agency NovaWulf.
On the time Fong stated the bids had been “for the most part, abandoned” — referring to an earlier assertion from a Celsius lawyer proclaiming the bids they acquired to date “have not been compelling.”
Nonetheless, the Celsius Official Committee of Unsecured Collectors (UCC) lawyer argued that this was not the case.
“The bids haven’t been rejected. That’s simply improper, and I hope I can disabuse individuals of that incorrect notion right now.”
The attorney refrained from confirming whether bids mentioned in the leak were accurate or not but said it was “regrettable” as it reduces the flexibility the committee has in the negotiation process.
“Every day, we and the debtors are providing public messages and private messages to potential investors about where they stand in the process,” explained Pesce.
“The messages that we sent them […] is very planned out and structured so that we can play different parties against each other and make sure we get the last dollar for Celsius account holders because the success of that process will determine recoveries here.”
“It’s therefore regrettable that this leak happened.”
“It’s particularly unfortunate that this has been monetized by the source of that leak for publicizing her paid-for content page on Patreon,” he said, referring to Fong.
Fong has responded to the accusation, arguing the leaked bids were 100% free with “no paywall.”
“The leaked bids are NOT behind a paywall such a strange accusation,” she said.
The bids were always free – I have posts behind a paywall that involve my personal life / love life which are NOT in the public interest to keep them somewhat private.
The leaked bids are NOT behind a paywall such a strange accusation @CelsiusUcc
— Tiffany Fong (@TiffanyFong_) January 31, 2023
The crypto blogger launched particulars regarding the 5 bids on Substack final week, which may nonetheless be accessed with out cost on the time of writing.
Pesce stated they’re now investigating how the leak occurred, including there was “significant concern that a potential investor that was involved in the process may be trying to manipulate it for their own benefit.”
“All that being stated, we’re working very arduous to guarantee that we are able to select a path as rapidly as doable and get this chapter over. We’re making an attempt to mitigate the consequences of that leak,” he stated.
The UCC attorneys additionally added some feedback in gentle of the current examiner’s report on Celsius.
The examiner’s report shows in excruciating detail the improper, self-serving actions that Celsius (and its founders) took at customers’ expense, causing immense hardship to thousands of people. The UCC wants any responsible parties to pay for any bad acts.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) January 31, 2023
“I’ll be pretty blunt, you know, what Mr. Mashinsky and many members of his team did was wrong. Mr. Mashinsky lied. They covered up a lot of his lies through editing videos,” stated Colodny.
“They put themselves ahead of the company, and they put themselves ahead of the account holders more importantly.”
The UCC attorneys stated they may proceed to discover a lot of choices for restoration together with reinventing itself as a brand new, publicly-traded “recovery corporation,” promoting off a few of its mining tools, in addition to wanting into “winding down Celsius or transferring crypto to a third party.”