A federal judge has allowed the US Trustee’s office to introduce an independent examiner to the case into the embattled cryptocurrency lender Celsius Network.
The lender filed for bankruptcy earlier this year and is now facing pressure from investors and the public.
Judge Martin Glenn said on Wednesday that the independent examiner will have to focus on several areas which struck plaintiffs as suspicious and unfair.
One of those is a closer examination of why some customers’ accounts were switched to “Custody Service” instead of “Earn Program” while other accounts were put on “Withhold Account” option by the lender.
This ruling is a continuation of a previous agreement between Celsius and its creditors who decided to have an independent government examiner to step in and help offer clarity in the case.
Meanwhile, the US Trustee’s office, which operates under the Department of Justice, claimed that Celsius’ leadership and executive were not always forthcoming about the actual state of finances in the lender.
Reports emerged that acquisition of new assets was prioritized over sustainability and protecting consumer investments.
Celsius’ acquiescence to an independent examiner did not come without strings attached. The company said that it would be happy with the appointment but added that it would expect the scope of the examiner to be limited to crucial areas in which creditors want clarity, citing a need to reduce the cost of the investigation.
At the same time, the company is continuing to make controversial decisions. In August, the bankrupt lender tried to hire former CFO Rod Bolger for a $92,000 monthly salary, angering investors further.