• Celsius creditors have filed a proposal to sue Alex Mashinsky and other executives for alleged misdeeds.
• Creditors of FTX are turning their attention to the exchange’s venture backers.
• The US Securities and Exchange Commission (SEC) is also investigating both companies.
Lawsuits Against Celsius Executives
Celsius creditors have filed a proposal in a bankruptcy court to sue co-founder Alex Mashinsky and other former executives for fraud, recklessness, gross mismanagement, and self-interested conduct. The lawsuit claims that these parties were aware that Celsius was promising its customers interest payments that it could not afford, but did nothing to fix the problem.
Lawsuits Against FTX Venture Backers
Creditors of FTX are turning their attention to the exchange’s venture backers in an effort to recoup financial losses from the platform’s collapse. These lawsuits allege various infractions such as fraudulent transfers and breach of fiduciary obligations.
Investigation by SEC
The US Securities and Exchange Commission (SEC) is also investigating both Celsius and FTX for potential violations of securities laws. The regulator will be looking into whether or not these companies made false statements or omissions when offering their services to customers, which could lead to further legal action against them if any wrongdoing is found.
Potential Blockchain Use Case
On a more positive note, there is potential for blockchain technology to be used in recovering some of the funds lost during the collapses of both platforms. Using blockchain-based smart contracts, investors may be able to access their funds without having to go through lengthy legal procedures or rely on third parties like banks or lawyers who would take a cut out of any recovered amounts.
As more details emerge about what happened at Celsius and FTX, it’s clear that those affected by the collapses may still have hope for recovering some of their losses through lawsuits against individuals involved with these platforms as well as through blockchain technology applications that could potentially make this process easier than before.