Creditors of crypto lending firm Celsius have moved to subpoena Equities First, a lending firm which is embroiled in the Celsius bankruptcy.
The move comes after Celsius' former CEO, Alex Mashinsky, declared the company had borrowed money from Equities First, and when it attempted to repay the loans Equities First was unable to return the collateral. Mashinsky said Celsius is still owed $439 million from Equities First.
The creditors are seeking information regarding the loan agreements between Celsius and Equities First, any transfer of cash or crypto between Celsius and the lender, and also the reason behind Equities First's inability to pay back the $439 million collateral to Celsius.
On Thursday, Texas state agencies raised objections to Celsius' plan to sell off the stablecoin holdings. The potential stablecoin sale is scheduled for a hearing on Oct. 6 in New York.
It was also recently reported that FTX’s Sam Bankman-Fried could bid on the bankrupt crypto bank’s assets.
At press time, Celsius's native token, CEL, was down nearly 0.5% at $1.45.
UPDATE (Sept. 30, 2022 06:15 UTC): Updates headline, adds additional details in the third paragraph and additional background.
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