Independent Group Mandates Celsius to Publish Reorganization Plan

  • Celsius’ new CEO has filed a declaration under oath over restructuring activities.
  • Customers lose trust in Celsius, doubt plans to restructure.

Stakeholders are raising more questions over the future of the bankrupt crypto lending platform, Celsius. In a tweet, Celsians, a group unaffiliated with the defunct crypto lender, issued an ultimatum to Celsius to publish a reorganization plan.

Celsians’ ultimatum comes 24 hours after the current Celsius CEO, Chris Ferraro, filed a declaration under oath of his activities toward restructuring the platform. Ferraro became the CEO of Celsius in September 2022, following the resignation of the former CEO, Alex Mashinsky.

In the filing, Ferraro declared he was familiar with the processes taken and the current state of Celsius. He also claimed familiarity with the company’s restructuring efforts, how it runs on a day-to-day basis, and its financial affairs. Ferraro also expressed his willingness to testify on matters concerning the activities of Celsius if called upon to do so.

Ferraro’s filing contained the details of his qualifications that span approximately two decades. He included his educational qualifications and past work experiences, including his time at Cerberus Operations & Advisory Company as Senior Managing Director.

According to Ferraro, he undertakes several responsibilities at Celsius, including interfacing with advisors and a special committee to discuss the company’s restructuring efforts. He claimed to have worked closely with both groups to pursue value-maximizing transactions that will bring a swift end to the bankruptcy challenges of Celsius.

Ferraro’s filing under oath has not raised the enthusiasm of Celsius’ customers, the majority of whom are only interested in getting back their money. Most of the respondents to the community’s tweet showed a lack of trust in the processes embarked on by the platform. One responder predicted Celsius would not release any reorganization plan, as demanded by the group. The responder accused Celsius of burying the exclusivity extension motion, predicting more conflict for the organization.

Other respondents expressed their frustration, claiming that nine months after the platform’s collapse was more than enough time to produce a plan.

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