Cryptocurrency lending company Celsius has failed to accurately record transactions between its subsidiaries, making it difficult to fully determine intercompany claims, according to court documents filed Thursday.
The documents were filed in response to a court order seeking information about potential claims against its affiliates following the company’s July 2022 filing for bankruptcy.
Coindesk reported that the claim is held by Celsius Network LLC against Celsius Network Ltd. was valued at approximately $9.1 billion based on books and records. That number didn’t account for “deficiencies in record keeping” that occurred in the three months leading up to the bankruptcy filing.
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An estimated 7,000 transactions were not reflected or recorded in the company’s books and the lack of records made the reconstruction of the intercompany claim difficult.
Celsius submitted a sales plan to the court earlier this week as part of its restructuring efforts.
The documents filed Thursday reflect the status of the company’s books as of the date of the bankruptcy filing.
The lack of an accurate record means it may not be possible to fully determine the intercompany claim. If this were possible, the process would be costly and time-consuming, and would likely require the engagement of a forensic accounting firm.
After extensive analysis, Celsius estimated the LLC’s total claim against CNL at $3.5 billion.
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