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's former CEO Alex Mashinsky declared that the company had borrowed money from Equities First, and when they attempted to repay the loans Equities First was unable to return their collateral. Mashinsky said that 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 inability to payback the $439 million collateral to Celsius.
Celsius was one of the crypto firms to collapse due to the market downturn earlier this year and has been struggling to payback its creditors. The lending firm was looking at a number of ways to payback its debt, including IOU (“I Owe You”) tokens and selling off its stablecoin holdings.
On Thursday, Texas state agencies raised objects 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.