The Department of Justice (DOJ) has objected to Celsius’ proposal to liquidate its stablecoin assets and bring back the withdrawal service for a limited pool of users.
According to DOJ, there is an apparent lack of openness in Celsius’ financial situation, and important decisions such as these shouldn’t be made until an independent examiner report has been submitted.
The DOJ’s action reinforces the complaints that the Vermont Department of Financial Regulation, Texas Department of Banking, and Texas State Securities Board filed last week. All three claim that selling Celsius’ stablecoin assets would put the company at risk of using the proceeds to resume operating against the law.
A U.S. Trustee for the DOJ, William Harrington, cited Celcius’ lack of transparency regarding its financials as the reason behind the objection.
In the filing, Harrington asserts that — unless the independent examiner report on Celsius business operations is finished — such withdrawals should not be made available.
In addition, the DOJ has voiced opposition to a possible stablecoin sell-off, citing identical concerns expressed by Vermont and Texas regulators that Celsius’ petition fails to specifically define “what impact such a distribution or sale would have” on the company’s future operations.
The filing adds that the Stablecoin Motion aims to liquidate stablecoins held by the Debtors without disclosing ownership, segregation, or how such a sale will affect later payouts to creditors who might hold stablecoins on deposit with the Debtors.
