Bankrupt crypto lender Celsius wants to rehire former executive at $93,000 a month

Cryptocurrency lender Celsius, which filed for bankruptcy last month, is now asking a former executive to be paid well during legal proceedings.

Celsius, who once called himself “better than the bank” filed for bankruptcy With about $167 million in cash and $4.3 billion in assets in July, according to bankruptcy filings, about $4.7 billion was owed to users. The company froze users’ accounts on June 13 as the cryptocurrency fell in value and many investors were trying to withdraw their funds.

Celsius is now seeking a judge’s permission to pay $93,000 a month to its former chief financial officer while the bankruptcy filing makes its way through court. company on July 25 Asked The Southern District Bankruptcy Court of New York allowed former CFO Rod Bolger to be appointed as an advisor, citing a “need for stability” and his financial expertise in its request to have him on board.

“His institutional knowledge and experience about the unique features of cryptocurrencies is invaluable,” Celsius said in the filing.

However, Celsius customers are outraged that many are asking for cash grabs by unreliable politicians. More than 100 investors have written directly to Judge Martin Glenn, who is overseeing the case – some pleading for a refund of their lost funds and others accusing Celsius officials of criminal conduct.

,[T]Thousands of people’s lives have been destroyed because of their actions. [Celsius]Lawyers for investor Keith Sacno wrote. Why can’t those services be performed by other employees.”

“This company is asking for more per month than the average citizen in a year!” wrote Celsius Investor Mario Foti. Foti, who says he was a disabled Afghanistan War veteran, said he turned to Celsius as a means of raising funds because he had trouble finding employment.

“I have been saving for years to collect what I had in Celsius,” he said. “This is gross negligence and a complete disrespect to those who have lost their livelihood on this. I pray that the justice system takes its course and does not allow the rich to continue stealing from the poor.”

It is not uncommon for a bankrupt company to offer a current or former executive a lucrative payday to help oversee its court-supervised restructuring. But such an expense would have left less money to distribute to creditors.

A representative for Celsius did not immediately respond to a request for comment.

“fear state”

Meanwhile, several Celsius investors said they have lost substantial savings on the platform.

“I am in a state of fear, depression, anxiety, despair at the prospect of losing so much of my life savings,” wrote Lindsay Derrance, a 72-year-old woman who said she lost the money to invest in the company.

After years of accumulating cryptocurrency, Darence said she hopes to build up her holdings until she can use the money to pay off her mortgage. “I was a depositor who thought I was depositing my crypto in a secure digital bank,” she wrote, “I am begging you to join us and recover our kidnapped deposits from this criminal.”

Samuel DeGregory wrote about losing $15,000, or saving most of his life. “I am ashamed, humiliated and quite frankly, disgusted, that I put all my trust in a company that has apparently participated in almost fraudulent activity. I have spent years trying to get back the money I lost. I’ll spend it,” he said. wrote,

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