Celsius bankruptcy trustee rejects $2.96 million employee bonus payout

The restructuring trustee in the Celsius Network proceedings objected to the proposed $2.96 million team bonus for sticking with the company. He cited the lack of sufficient information in the motion.

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The trustee also noted that compensation could be paid to individuals who may be deemed insiders. In that case they should be removed from the employee retention program list.

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The motion states that the payments are due to 62 of the 275 specialists at the crypto-lending platform.

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\”This defies logic, not to mention the Bankruptcy Code. A company whose primary functions no longer involve providing services should not be offering a multi-million-dollar bonus scheme,\” explained the restructuring trustee.

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Celsius must show that the payments are reasonable. Without identifiable metrics, the trustee will not issue a positive recommendation.

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Earlier, on June 13, the crypto-lending platform halted withdrawals, exchanges and transfers between accounts.

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A month later, Celsius and certain affiliated entities filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The platform’s liabilities exceeded its assets by $2.85 billion.

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On October 25, a bankruptcy judge approved Celsius Network’s asset-sale procedures plan. The auctions could be completed by the end of the year.

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