Celsius Network LLC customers whose assets have been trapped on the failed crypto lender’s platform questioned the firm’s acting chief executive officer about fluctuations in the company’s native token and its plans to partially repay creditors with stock in a new Bitcoin mining business, Bloomberg News reported. Nearly a dozen customers cross-examined Celsius Interim CEO Chris Ferraro, who testified Tuesday in New York bankruptcy court in support of the company’s plan to partially repay creditors and resolve its chapter 11 case. The hearing gave customers a chance to probe Ferraro, who has guided Celsius through bankruptcy, while their assets remain in limbo. Ferraro, who took over as Celsius’ acting CEO following the resignation of Alex Mashinsky, said his primary goal is to distribute roughly $2 billion in Bitcoin and Ethereum to creditors and transfer the reformulated business to a new management team led by Arrington Capital. Customers on Tuesday also questioned Steven Kokinos, who is expected to become the new company’s CEO. The new creditor-owned firm slated to emerge from Celsius’ bankruptcy has a strong chance at succeeding because it will be staked with $450 million in crypto, carry no debt and run a robust Bitcoin mining operation, Ferraro said.
