‘Categorically False’ — Attorney Denies Bids for Celsius Assets were Rejected

Soon after the examiners’ findings were filed, the Celsius Official Committee of Unsecured Creditors held a two-hour town hall meeting.

Celsius‘ official creditor committee’s attorney has dismissed claims that the offer for its crypto assets has been rejected.

Attorneys from White & Case LLP, including Gregory Pesce and Aaron Colodny, addressed the so-called “leaked” bids for Celsius’ crypto assets during a Twitter Space “town hall” on Jan. 31 after the examiner’s findings on Celsius.

“The allegation that the bids were rejected is untrue,” Pesce stated.

Fong’s Substack article on Jan. 27 mentioned at least five businesses interested in bidding for Celsius’ crypto assets, including Binance, Bank To The Future, Galaxy Digital, crypto trading company Cumberland DRW, and digital asset investment firm NovaWulf.

Fong stated at the time that the bids were “for the most part, abandoned,” alluding to an earlier comment from a Celsius lawyer declaring that the proposals submitted thus far “have not been persuasive.”

However, the official Committee of Unsecured Creditors (UCC) counsel contended that this was not the case.

“The bids have not been rejected. That’s just wrong, and I hope I can disabuse people of that incorrect notion today.”

The attorney declined to clarify whether the bids referenced in the leak were accurate but said it was “regrettable” since it limits the committee’s flexibility in the bargaining process.

“Every day, the debtors and we send public and private communications to potential investors about where they are in the process,” Pesce added.

“The emails that we send them […] are extremely well thought out and designed so that we can play different parties against one another and ensure that we obtain every last dollar for Celsius account holders since the success of that process will determine recovery here.”

“It’s therefore regrettable that this leak happened.”

“Sadly, the source of that leak has monetized it for marketing her paid-for content page on Patreon,” he added, referring to Fong.

Fong replied to the charge, claiming that the leaked bids were free with no “paywall.”

“It’s an odd charge that the leaked bids are behind a paywall,” she remarked.

Last week, the crypto blogger revealed data about the five Substack bids, which are still accessible for free at the time of writing.

Pesce stated that they are currently looking into how the leak occurred and that there is “great fear that a possible investor who was involved in the process may be attempting to influence it for their gain.”

“All that being said, we are working very hard to make sure that we can select a course as fast as possible and get this bankruptcy over. “We’re attempting to limit the leak’s impact,” he explained.

Given the recent examiner’s findings on Celsius, the UCC attorneys submitted additional remarks.

“I’ll be blunt: What Mr. Mashinsky and several staff members did was wrong. Mr. Mashinsky deceived us. “They edited the films to cover up many of his falsehoods,” Colodny added.

“They put themselves ahead of the company, and they put themselves ahead of the account holders more importantly.”

The UCC attorneys stated that they will continue investigating various recovery possibilities, including creating themselves as a new, publicly listed “recovery organization,” selling off some of their mining equipment, and exploring “winding down Celsius or transferring crypto to a third party.”