Celsius Withdrawals Must Remain Closed: Department of Justice

According to a U.S. Trustee working under the Department of Justice, Celsius shouldn’t be allowed to start customer withdrawals until a more thorough inquiry has been conducted. American Trustee Disagrees with Celsius’ Plans Due to concerns raised by a representative of the U.S. Trustee Program, which oversees the management of bankruptcy cases, Celsius’ plans to reopen withdrawals may be postponed. Celsius asked permission to transfer $225 million from its custody program and withheld accounts on September 1. A participant in the U.S. Trustee Program of the Department of Justice is now opposing that request. U.S. Trustee William K. Harrington opposed Celsius’ plans to “reopen withdrawals for select customers concerning certain funds” held in custody and withhold accounts in a court document on September 30. Harrington criticized Celsius for their “premature” plans to release the money. He continued that the firm’s request would “impulsively distribute” money without fully comprehending its crypto holdings and inter-account crypto transfers. Additionally, it would disregard the connection between the balance sheet of the business and the cryptocurrency that creditors have deposited. Harrington noted that until an Examiner Report has been submitted, Celsius shouldn’t be permitted to release payments. That report would explain whether the corporation mixed up funds and why its account offerings changed in April 2022. Celsius’ Pl...