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Crypto lender Celsius supported its token while insiders benefited, according to a US bankruptcy examiner

  • March 8, 2023

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A U.S. court-ordered examiner report made public on Tuesday revealed that the bankrupt cryptocurrency lender Celsius Network inflated its balance sheet as two of its founders paid out millions by using investor funds and client deposits to support its own coin.

During the COVID-19 pandemic, cryptocurrency lenders like Celsius saw a surge in business, luring depositors with high interest rates and convenient loan access. Following the suspension of customer withdrawals from its platform, New Jersey-based Celsius filed for bankruptcy in the United States in July of last year.

The investigation

Shoba Pillay, a former prosecutor, was designated as an independent examiner by U.S. Bankruptcy Judge Martin Glenn, who is presiding over the Chapter 11 case, in September. She was given the responsibility of looking into complaints from Celsius clients that the business ran like a Ponzi scheme and of reporting on how it handled bitcoin deposits.

Requests for comment from reporters were addressed to several addresses, including an email on Celsius’ website, a public relations company that represented Celsius at the time of its bankruptcy, and CEO Alex Mashinsky’s attorney. Celsius did not immediately react to any of these requests. After the report’s publication and during the night in American time, the demands were made.

Retail clients’ cryptocurrency deposits were collected by Celsius, who then used them to buy cryptocurrency in the equivalent of the wholesale market. It raised some of the first funds to fund its business by inventing and selling its own crypto currency, dubbed “CEL”.

According to the investigation, the corporation promised customers that it would purchase CEL on the secondary market and deliver it to them as rewards. The report claimed that this would increase CEL’s pricing while simultaneously bringing in new customers

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Law Firm M&A Deals Should Consolidate Their Tech Solutions Early

  • February 18, 2023

Last year saw 46 completed law firm mergers, and according to Fairfax Associates, more are on the way.

For years, middle market pressures led large firms to expand and add new practice capabilities, while smaller specialist firms developed their own position in the marketplace.

We now face a second pressing, and smaller and mid-market firms are seeking new partners.

Such deals raise the issue of how firms consolidate and invest in their systems, particularly the marketing technology stack.

It is a misstep to address marketing systems—the customer relationship management system, deal and litigation trackers, and other marketing databases—at the end of merger discussions.

Deal Communication

How a merger is communicated—at what stage in the process and by whom—is vitally important to its success.

A well-run system that denotes key clients, responsible partners, billings, and nuanced notes about the relationships is critical.

I often suggest to clients pre-merger that they consider all their constituents, employees, lawyers, clients, recruiters, vendors, alumni, and referral sources and plan to communicate with each of them in a timely manner.

For example, there should be plans to communicate with clients in person or by phone. When that is not possible, there are other ways to reach out so clients hear the news directly rather than learn about the move in the media.

Once it’s time to make an announcement and plan who should be connecting with which groups, marketing technology is imperative to a successful communications strategy.

Marketing tech solutions streamline client information and contact mining, and link with finance. Without them, marketing efforts will be scattershot at best, and tactics can be far off base.

Ensuring a rollout of the right technology that facilitates each party’s strategy is important to get right. This should take place before planning communications and marketing tactics. Here are

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