Celsius creditors sue Equities First to recover $439 million

The creditors’ committee of the crypto-lending platform Celsius Network filed a lawsuit against Equities First seeking the return of $439 million.

The plaintiff requested information on the loan agreements, any transfers of funds between Celsius and the defendant, and the reason for the defendant’s inability to return the collateral for the above amount.

On September 29, the Texas State Securities Board, the Texas Department of Banking, and the Vermont Department of Financial Regulation opposed the platform’s plan to sell stablecoins valued at about $23 million. The court will hear the proposal on October 6.

In regulators’ motions, it is stated that Celsius could use the funds Celsius obtained to resume operations in violation of state laws.

In September, Celsius’s chief executive officer Alex Mashinsky stepped down from his position.

In August, The U.S. Trustee’s Office stated that there were “numerous questions” for the firm’s management. Earlier, the Financial Times reported on Mashinsky’s involvement in implementing the trading strategy, which cost “millions of dollars”.

In September, the CEO presented a plan to rescue the company from bankruptcy, according to the press.

Earlier, ForkLog reported that Celsius is considering issuing wrapped tokens as part of the platform’s restructuring plan.

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