1. PixelPlaygroundHome
  2. Metaverse Insights

Celsius’ Incomplete Recordkeeping Leads to Uncertainty

• Metaverse Insights • 152 views

It is reported that according to the court documents cited by CoinDesk, Celsius did not fully record about 7000 transactions between it and its affiliated comp…

Celsius Incomplete Recordkeeping Leads to Uncertainty

It is reported that according to the court documents cited by CoinDesk, Celsius did not fully record about 7000 transactions between it and its affiliated companies within three months before filing for bankruptcy, resulting in almost impossible to completely reproduce the inter-company debt structure.

Celsius did not record about 7000 transactions between subsidiaries and could not completely reconstruct the inter-company claims

Interpretation of the news:


CoinDesk reported that Celsius, a digital currency exchange, did not fully record approximately 7,000 transactions between the exchange and its affiliated companies three months before it filed for bankruptcy. This oversight has made it almost impossible to accurately reproduce the exchange’s inter-company debt structure, leading to uncertainty regarding the exchange’s financial status.

The lack of complete recordkeeping by Celsius presents multiple issues. Firstly, it indicates a lack of attention to detail and an insufficient level of responsibility towards the company’s financial integrity. This raises concerns about potential mismanagement of other key aspects of the business operations, which could have had a considerable impact on the exchange’s downward spiral.

Secondly, the inability to reproduce the inter-company debt structure hinders efforts to resolve the bankruptcy proceedings efficiently. Without clear information, the court might need to rely on rough approximations to determine the extent of Celsius’ liability, resulting in unfair outcomes for affected parties. Additionally, any creditors seeking reimbursement may have a harder time obtaining restitution with incomplete documentation of transactions.

This report may also affect consumer confidence in digital currency exchanges; lack of proper recordkeeping exposes the industry to the same issues that led to the 2008 financial crisis. Digital currency exchanges have a responsibility to maintain a high level of transparency and accountability in their operations to win and maintain the trust of their users. Ceasing to do so could have catastrophic results for the company and the industry as a whole.

In conclusion, Celsius’ incomplete recordkeeping regarding its inter-company transactions before filing for bankruptcy creates significant uncertainty regarding its financial status. The oversight undermines the company’s responsibility towards its stakeholders, hindering the efforts to resolve the bankruptcy proceedings efficiently. It also raises concerns about the lack of transparency and accountability across the digital currency industry. There is a need for greater vigilance and regulatory oversight of these financial entities to ensure they operate at high levels of integrity and accountability that protect their stakeholders’ interests.

Overall three keywords: Celsius, recordkeeping, uncertainty.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/1275/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/17/2023 11:55
Next 02/17/2023 12:11

Recommended articles