Court Approved An Examiner For The Celsius Bankruptcy Case
According to a recent ruling filed by bankruptcy judge Martin Glenn, the court has approved an examiner for the Celsius bankruptcy case.
Earlier this morning, the US Trustee, the Department of Justice’s agent in the bankruptcy process, urged the court to approve Shoba Pillay.
Pillay is a partner at Jenner & Block, where she co-chairs the Data Privacy and Cybersecurity Practice. She also works as a partner in the firm’s Investigations, Compliance, and Defense Practice as well as its National Security, Sanctions, and Export Controls Practice.
Pillay worked as an Assistant United States Attorney in the Northern District of Illinois for more than 11 years until joining the private sector in 2021. Pillay works at Jenner & Block, where she handles internal and government-related cybersecurity investigations.
Pillay will write a report on Celsius’ cryptocurrency storage, client account management, the state of its mining activity, and tax difficulties.
Earlier last month, the court chose to assign an examiner to Celsius. Though this is an unusual occurrence in Chapter 11 cases, the U.S. Trustee initially sought to appoint an independent party to undertake an inquiry into Celsius in order to get more transparency about the firm’s leadership and business activities before its collapse.
State securities authorities quickly weighed in, claiming charges that the business deceived investors and sold unregistered securities.
The committee representing creditors and customers was first reticent to spend the expense of an independent examiner on behalf of the Celsius estate. After the office reduced the scope of the examiner’s probe, the organization struck an arrangement with the US Trustee.
The creditor committee is undertaking its own inquiry into Celsius leadership, the results of which have lately prompted it to demand the dismissal of CEO Alex Mashinsky, who has since resigned.
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