{"id":69226,"date":"2022-10-28T11:16:38","date_gmt":"2022-10-28T08:16:38","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69226"},"modified":"2025-09-07T18:43:18","modified_gmt":"2025-09-07T15:43:18","slug":"celsius-bankruptcy-trustee-rejects-2-96-million-employee-bonus-payout","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/celsius-bankruptcy-trustee-rejects-2-96-million-employee-bonus-payout\/","title":{"rendered":"Celsius bankruptcy trustee rejects $2.96 million employee bonus payout"},"content":{"rendered":"<p>The restructuring trustee in the Celsius Network proceedings <a href=\\\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174910272280000000057.pdf\\\">objected<\/a> to the proposed $2.96 million team bonus for sticking with the company. He cited the lack of sufficient information in the motion.<\/p>\n<p>\\n\\n<\/p>\n<p>The trustee also noted that compensation could be paid to individuals who may be deemed insiders. In that case they should be removed from the employee retention program list.<\/p>\n<p>\\n\\n<\/p>\n<p>The motion states that the payments are due to 62 of the 275 specialists at the crypto-lending platform.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\\&#8221;This defies logic, not to mention the Bankruptcy Code. A company whose primary functions no longer involve providing services should not be offering a multi-million-dollar bonus scheme,\\&#8221;<\/em> explained the restructuring trustee.<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>Celsius must show that the payments are reasonable. Without identifiable metrics, the trustee will not issue a positive recommendation.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier, on June 13, the crypto-lending platform <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-token-plunges-50-amid-withdrawal-suspension\">halted withdrawals, exchanges and transfers<\/a> between accounts.<\/p>\n<p>\\n\\n<\/p>\n<p>A month later, Celsius and certain affiliated entities <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-files-for-bankruptcy-protection\">filed for bankruptcy<\/a> under Chapter 11 of the U.S. Bankruptcy Code. The platform&#8217;s liabilities exceeded its assets <a href=\"https:\/\/u1f987.com\/en\/news\/gap-in-celsius-network-balance-sheet-amounts-to-2-85-billion\">by $2.85 billion<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<p>On October 25, a bankruptcy judge <a href=\"https:\/\/u1f987.com\/en\/news\/court-approves-asset-auction-schedule-for-celsius-network\">approved<\/a> Celsius Network&#8217;s asset-sale procedures plan. The auctions could be completed by the end of the year.<\/p>\n<p>\\n\\n<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\u201d\\\" target=\\\"\\u201c__blank\\u201d\\\" rel=\\\"\\u201cnofollow\\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The restructuring trustee at Celsius Network objected to the proposed $2.96 million bonus payout to part of the team for staying on. He cited the lack of sufficient information in the motion.<\/p>\n","protected":false},"author":1,"featured_media":69227,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,1348,1162],"class_list":["post-69226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-celsius-network","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69226"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69226\/revisions"}],"predecessor-version":[{"id":69228,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69226\/revisions\/69228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69227"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}