Celsius Network, a now-defunct cryptocurrency lender, plans to merge its United Kingdom and United States entities, following allegations that any distinction between the two companies was a sham in court filings.

The dispute centers on a decision made by the crypto lender in June 2021, when Celsius Network Limited (CNL) was warned to cease operations in the U.K. by the country's Financial Conduct Authority. To avoid consequences, CNL established a Limited Liability Company (LLC), Celsius Network LLC, in Delaware and aimed to transfer its assets to the new company.

In a court filing dated May 1st, the bankrupt crypto firm stated that the combination of its United Kingdom and United States entities led to confusion and chaos within the company. The filing suggests that there was a delay in completing formal documentation of the intercompany relationship, and when it was finally completed, it remained unclear what transactions the agreements affected.

The filing also alleges that the transfer was confusing for everyday investors, but the more experienced Series B investors understood the implications of the transfer. To ensure that smaller creditors are not overlooked in the recovery of lost funds, the two entities should be treated as a single entity in the bankruptcy proceedings.

Sources:

https://cointelegraph.com/news/celsius-eyes-merge-of-entities-as-creditors-claim-distinctions-were-a-sham

https://www.investing.com/news/cryptocurrency-news/celsius-eyes-merge-of-entities-as-creditors-claim-distinctions-were-a-sham-3070928

https://finance.yahoo.com/news/celsius-seeks-merge-uk-u-073600596.html

https://www.panewslab.com/en/sqarticledetails/8657b46737b7cb07de758b3d3d.html