Celsius Failed to Record Transactions with Affiliated Companies

02/17/2023 12:10 • Daily Digest • 132 views

It is reported that according to the court documents cited by CoinDesk, Celsius did not fully record about 7000 transactions between it and its affiliated companies within three months before filing for bankruptcy, resulting in almost impossible to completely reproduce the inter-company debt structure.

Celsius did not record about 7000 transactions between subsidiaries and could not completely reconstruct the inter-company claims

Interpretation of the news:

According to recent news, Celsius did not completely record around 7000 transactions with its affiliated companies within three months before filing for bankruptcy. This has created a significant problem as the inter-company debt structure cannot be entirely reproduced due to the incomplete records.

This lack of complete records will likely make it difficult for Celsius and its creditors to resolve the inter-company debts, leading to possible lawsuits and further uncertainties for those involved in court proceedings. It also raises questions about the company’s financial management and accounting practices, which may have contributed to its inability to meet its financial obligations.

This situation highlights how crucial proper record-keeping is in the financial industry, and how failing to keep thorough records can lead to severe consequences. It is especially true when it comes to inter-company transactions, which are often complex and require meticulous documentation to resolve disputes.

The news also reveals the challenges of dealing with bankruptcies, especially when it comes to inter-company transactions. The inability to reproduce the inter-company debt structure due to incomplete records makes it challenging to determine which party owes what to whom, further complicating the bankruptcy process.

In conclusion, Celsius’s failure to record 7000 transactions with its affiliated companies within three months before filing for bankruptcy has created significant challenges for the company and its creditors. It highlights the importance of proper record-keeping in financial transactions, especially when dealing with inter-company debts. The lack of complete records will likely lead to lawsuits and further uncertainties in the court proceedings, emphasizing the need for transparency and accuracy in financial accounting practices.

Overall, this news is a reminder of the pitfalls of incomplete records and the importance of accuracy and thoroughness in financial accounting.

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