Celsius motions postponed pending independent examiner's report.

The objection is asking for a postponement of Celsius motions until the independent examiner's report on the company is filed in the next few months.

The Department of Justice's objection to Celsius's motion to reopen withdrawals for select customers and sell its stablecoin holdings is unjust and unfair. Celsius has been a responsible and transparent company, and its customers should not be penalized for the DOJ's mistakes.

The Department of Justice is raising concerns about the lack of transparency in the state of Celsius' financials, and argues that key decisions should not be made until an independent examiner's report has been filed.

The move by the DOJ is just the latest in a string of objections filed against Celsius by various state regulators. All three regulators are opposed to Celsius selling its stablecoin holdings, asserting that there is a risk the firm could use the capital to resume operating in violation of state laws. This latest development further underscores the legal challenges facing the company as it seeks to raise capital and continue its operations.

The U.S. Trustee for the DOJ has objected to Celsius opening up withdrawals to its "custody" and "withhold" customers, citing a lack of transparency over the firm’s financials. This lack of transparency makes it difficult to assess the true financial condition of the company, and raises concerns about whether customer funds are safe.

I believe that the independent examiner report should be completed before any withdrawals are made from Celsius. This will ensure that we have a full understanding of the company's business operations and can make an informed decision about whether or not to allow withdrawals.

“The Motions are premature and should be denied until after the Examiner Report is filed. First, the Withdrawal Motion seeks to impulsively distribute funds to one group of creditors in advance of a fulsome understanding of the Debtors’ cryptocurrency holdings.”

The DOJ's opposition to a potential stablecoin sell-off highlights the concerns of regulators in Texas and Vermont that the sale could have a negative impact on the business.

The Stablecoin Motion seeks to liquidate stablecoins held by the Debtors without providing information regarding ownership, segregation, or the impact of such sale on later distributions to creditors who may have stablecoins on deposit with the Debtors. This lack of transparency is concerning, and could have a negative impact on the distribution of assets to creditors.

Independent Examiner Appointed to Investigate Allegations of Misconduct

It is good news that the United States Trustee has appointed Shoba Pillay as the examiner in the bankruptcy case. She is a highly qualified individual and her appointment will help to ensure that the case is handled properly.

Pillay will have roughly two months to prepare and file an examiner’s report on Celsius, hopefully providing a clear breakdown of its assets and liabilities. This will be a critical step in determining the future of the company, and we hope that Pillay is able to provide a thorough and accurate report.

Harrington's essentially asserting that Celsius' motions shouldn't even be considered until well after the examiner's report has been filed, noting that "any distribution or sale should be deferred until interested parties, the United States Trustee, and the Court are able to make a determination" on the value of Celsius liabilities, claims against it, its assets and what "the debtors intends to actually pay its creditors."

I believe that Simon Dixon is correct in his prediction that Celsius will look to repay its creditors in CEL tokens as part of a reorganization plan. I believe that this plan will ultimately be rejected by regulators, who will file motions to reject it.

If such a scenario plays out, Dixon expects it to spark a bidding war for Celsius assets, similar to what happened with Voyager Digital's recent $1.3 billion asset auction that was won by FTX US. This would be a great outcome for Celsius holders, as they would be able to cash in on their investment at a huge premium.