Celsius Creditors Claims $439 Million In Collateral From Equities First

Celsius creditors is pursuing a subpoena with Equities First because the lender was unable to repay the collateral when Celsius tried to repay its $439 million debt.

According to CoinDesk, creditors of crypto lending firm Celsius has moved to subpoena Equities First, a lending firm which is embroiled in the Celsius bankruptcy.

The $439 million debt is claimed by former Celsius chief executive Alex Mashinsky. Mashinsky said that Celsius still owes $439 million from Equities First because when it tried to repay the loans, Equities First was unable to repay the collateral of the bankrupt crypto lender.

The creditors are interested in learning more about the loan arrangements between Celsius and Equities First, any money or cryptocurrency transfers between Celsius and the lender, as well as the circumstances behind Equities First’s inability to repay Celsius for the $439 million in collateral.

Today, the Texas State Securities Board, the Texas Department of Banking, and the Vermont Department of Financial Regulation submitted an objection. Celsius wishes to liquidate its stablecoin assets in order to strengthen its finances in the midst of the ongoing bankruptcy procedures.

According to Vermont’s attorneys, Celsius might use the cash to restart possibly criminal operations. They protested on the grounds that the Celsius request does not specify how the cash would be used, creating the likelihood that the corporation may restart functioning in contravention of state law.

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