Lawyers of the company sent documents to the court for damages and recovery of a fine. The documents allege that Alex Mashinsky, who stepped down as CEO in September, and other top managers were incompetent in the company’s business. They “manipulated the price of the CEL token and made reckless, reckless and sometimes self-serving investments.” As a result of such actions, the crypto creditor lost more than $1 billion in a year.
The company is demanding that Mashinsky return $2.8 million, and his wife, Krissy Mashinsky, another $4.9 million that she withdrew from Celsius. The authors of the lawsuit insist that more than $ 25 million withdrawn by other employees of the company should also be returned.
Before Celsius suspended operations, Mashinsky withdrew $10 million from the platform. But representatives of the founder claim that these were scheduled payments.
In July, Celsius filed for financial insolvency under the provisions of Chapter 11 of the US Bankruptcy Code. The company was supposed to submit a restructuring plan within four months, but soon applied to the court for an extension of the deadline. The court agreed to push back the date to February 15, 2023. However, the Celsius lawyers then requested another 44 days.
The Celsius leadership would like to move the vote on the extension to June 30th. Lawyers for the crypto lender explained that the extension is critical as it will allow the platform to resolve the situation more quickly and smoothly.
In response, the US authorities, a committee of creditors and a special group of borrowers filed a motion against postponing the voting date on the restructuring plan proposed by Celsius Network.
Source: Bits
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