Summary of Celsius Shareholders & Creditors Important Update

00:00:00 - 00:45:00

The video provides an important technical update for Celsius Network shareholders and creditors, outlining key developments over the past eight months. Simon Dixon discusses Celsius' misrepresentations and negligence, regulatory issues, and how the recent bar date relates to shareholders and creditors. He also provides updates on the ongoing case and potential outcomes for those involved. The speaker advises those seeking to recover their investments to file necessary claim forms and stresses the importance of understanding the relationships between different entities and transactions. The goal of the video is to educate viewers and encourage them to seek legal advice to protect their investments.

• 00:00:00 In this section of the video, Simon Dixon provides a technical update to Celsius creditors discussing the complicated relationship between shares and creditors over the last eight months. He warns that this could impact the recovery of the creditor's investments and the next steps required to fill out claim forms and sue various entities within Celsius. He also goes through a history of Celsius and bang to the Future, and the drama surrounding this relationship. Simon provides information and educates Celsius creditors about the structure of claim forms and the current situation of the case.
• 00:05:00 In this section, the speaker explains the timeline and background of Celsius Network and its misrepresentations and negligence. The company misrepresented funds raised in an ICO and later pivoted from an Institutional lending platform to making investments in private equity, D5, and other volatile assets. They ended up paying out 1.3 billion dollars of yield that was never earned and created a pump and dump by using client money to push up the price of sell token. The UCC, as well as Kirkland danelius, have said creditors deserve to sue for fraud and mismanagement. Regulatory investigations lead to Celsius leaving the UK and setting up a new structure in the US, which has now become relevant in the current situation.
• 00:10:00 In this section, the video provides detailed information about Celsius, its series B investors, and the regulatory issues the company faced. The absence of any license beyond the most essential one to operate in the United States was noted by regulators, leading to cease and desist orders and an SEC investigation for unregistered securities offering. Celsius subsequently went into Chapter 11 protection. Additionally, the video describes the resignation of Celsius founder Alex Mashinsky and presents a Twitter spaces audio clip where Mashinsky failed to respond to several important questions concerning his investment in the company.
• 00:15:00 In this section, the speaker discusses the recent bar date on February 9th and how it relates to Celsius shareholders and creditors. They explain that traditionally, equity is lost in a bankruptcy situation and due to the large hole in Celsius's equity, there was no value. However, the speaker and others were told by the UCC and advisors that they had a claim over the whole group, which was submitted in the original chapter 11 filings. They simplify this information and encourage shareholders and creditors to understand it in order to make informed decisions moving forward.
• 00:20:00 In this section, the update reveals that George Glenn has ruled in favor of series B shareholders in the case involving certain investors in the series B that had preferred shares over the series A. Creditors now only have a claim over the company that they sign the terms and conditions with rather than all of the entities, but all the creditors could still end up suing all of the other entities for fraud and misrepresentation. The cap table on the public disclosure was also examined with creditors having a relationship with Celsius Network at LLC, shareholders with Celsius Network Limited, and both facing immense complications in the process.
• 00:25:00 In this section, the speaker provides an update on the situation with Celsius Network LLC and the relationships between different entities and transactions. The record-keeping was found to be fraudulent, with a nine billion dollar loan being reduced to a 3.48 billion dollar loan due to the difficulty in identifying which entity was working with which transaction. Shareholders who have more than 3.48 billion dollars of assets would be entitled to something, and they will have to sue different entities based on fraud, misrepresentation, and negligence. The speaker goes on to discuss the mining company, where client money was used as collateral and a billion-dollar loan was taken out with Tether to invest in a mining operation, which was going to go public. The relationship between shareholders, the parent company Celsius Network LLC, and series A investors is also discussed, with misrepresentations made by Alex Majinski.
• 00:30:00 In this section, the speaker discusses the shareholders of Celsius Network Limited, including the fact that Celsius Network Inc owns the majority of the company at 64.63%. Other shareholders include the series B group, Tether, the Bank to the Future Syndicate, and a special committee member. The speaker explains that there is a company above Celsius Network Limited, Celsius Inc, which is 83.67% owned by Alex Mashinsky, who still holds a director position on Celsius Network Limited. However, the speaker notes that due to the fraud allegations and possible insider clawbacks, Mashinsky may no longer be considered a creditor. Understanding this relationship is important for those filing claim forms as creditors or shareholders.
• 00:35:00 In this section, the speaker discusses the potential outcomes for shareholders and creditors in the upcoming case between Celsius and its stakeholders. While it appears that shareholders may have some value in their claims, creditors may only have a claim against LLC and not the parent company with exposure to the mining operation. The UCC advises that people file a claim form against other entities as well on the basis of fraud, negligence, and misrepresentation. The speaker believes the case will be settled within Chapter 11, with the relationships between the UCC, shareholders, and the judge being key to determining the outcome. Finally, there are various settlements that are expected to be reached in the upcoming days, such as those for borrowers and custody.
• 00:40:00 In this section, it is explained that the situation with Celsius has become complicated and important due to the various legal cases and claims being made. The Examiner report has evidence of fraud, misrepresentations, and negligence which are against Alex Mashinsky, Daniel Leone, and other affiliates; these cases are crucial for recovery. Shareholders will likely be filing their claims, and everything will be resolved in court. The plan still moves forward, and custody, settlement, and Bora will continue to develop, but depending on what happens with the criminal cases, it may turn into litigation trust. It is emphasized that recovery is an essential outcome after Chapter 11.
• 00:45:00 In this section, the speaker explains that creditors should not treat the information in the video as legal advice, and that the purpose is to educate creditors so that they can discuss it with their lawyers. She goes on to say that people should file the necessary claim forms because now it is mandatory and it will affect the likely recovery of funds. She also advises viewers to attend the Twitter spaces for more information and to share the video with creditors and shareholders who may not be aware of its importance. Ultimately, the speaker hopes the information provided will be useful to those involved in the process.