Court Appoints Shoba Pillay To Examine Celsius’ Chapter 11 Bankruptcy Case

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Alex Mashinsky; Photo Source: CNBC Television
According to the order issued by the bankruptcy court, “Shoba Pillay, a disinterested person as set forth in 11 U.S.C. § 101(14), has been appointed by the United States Trustee in the above-captioned Chapter 11 case.”

The U.S. Bankruptcy Court in the Southern District of New York approved the appointment of a third-party examiner to look into Celsius’ finances.

Earlier in August, the U.S. Trustee filed a request to engage an external examiner to gain clarity on Celsius’ financial accounts. It stated that the crypto lender had many inconsistencies in its bankruptcy case.

The court filing added that Celsius’ clients felt “misled” by the firm’s management. By appointing an outside examiner, the agency also wished to look into Celsius’ unregistered securities. The examiner will need to submit the results of their investigation within two months of appointment.

Interestingly, the Committee for Unsecured Creditors was against this motion. They claimed hiring an external examiner would be costly and prolong the court proceedings. 

The committee soon changed its stance and agreed to cooperate with the examiner. Federal Judge Martin Glenn also approved the U.S. Trustee’s motion a few weeks ago. 

As a result, Prosecutor Shoba Pillay was appointed as the third party examiner in the crypto lender’s bankruptcy case. Pillay previously served as an Assistant U.S. Attorney in Chicago, Illinois for 11 years. She currently co-chairs Data Privacy & Cybersecurity Practice as a partner for Jenner & Block LLP.

Written by
Ayush Pande
According to the order issued by the bankruptcy court, “Shoba Pillay, a disinterested person as set forth in 11 U.S.C. § 101(14), has been appointed by the United States Trustee in the above-captioned Chapter 11 case.”

The U.S. Bankruptcy Court in the Southern District of New York approved the appointment of a third-party examiner to look into Celsius’ finances.

Earlier in August, the U.S. Trustee filed a request to engage an external examiner to gain clarity on Celsius’ financial accounts. It stated that the crypto lender had many inconsistencies in its bankruptcy case.

The court filing added that Celsius’ clients felt “misled” by the firm’s management. By appointing an outside examiner, the agency also wished to look into Celsius’ unregistered securities. The examiner will need to submit the results of their investigation within two months of appointment.

Interestingly, the Committee for Unsecured Creditors was against this motion. They claimed hiring an external examiner would be costly and prolong the court proceedings. 

The committee soon changed its stance and agreed to cooperate with the examiner. Federal Judge Martin Glenn also approved the U.S. Trustee’s motion a few weeks ago. 

As a result, Prosecutor Shoba Pillay was appointed as the third party examiner in the crypto lender’s bankruptcy case. Pillay previously served as an Assistant U.S. Attorney in Chicago, Illinois for 11 years. She currently co-chairs Data Privacy & Cybersecurity Practice as a partner for Jenner & Block LLP.

Written by
Ayush Pande