Shareholders in Bankrupt Crypto Lender Celsius Seek ‘Fiduciary’

The shareholders of Celsius Network filed a motion to set up a committee to make sure they are represented in the company's Chapter 11 proceedings.

Lawyers for a group of equity owners said that Series B preferred shareholders need their own fiduciary.

The high profile casualty of this year's meltdown in digital assets was Celsius, which filed for Chapter 11 in July.

There is no stakeholder currently at the table advocating for the interests of the equity holders, according to the filing.

Equity holders will be on equal footing with other stakeholders if a committee is appointed, particularly where the debtor has abandoned any pretense of acting in the interests of the equity holders.

There will be a hearing on the matter in October. In an update on the social networking site, Celsius Network said it hopes to advance talks of withdrawals at its October hearing.