Crypto lawyer : Celsius CEO owes creditors transparency.

By The Exchange Team

The U.S. Trustee supervising Celsius Network's bankruptcy is entitled to seek an outside examiner because the CEO hasn't been honest.

Sasha Hodder, founder of Hodder Law Firm, said Celsius CEO Alex Mashinsky needs greater "transparency," including a list of debtors.

Hodder's agency, which works with bitcoin and cryptocurrency startups, is not a party to the bankruptcy proceedings.

"If [Mashinsky] was being transparent, [the Trustee] would not have needed to bring in an independent examiner," said Hodder.

Hodder claimed creditors are worried Celsius is spending money quickly. The lender filed Chapter 11 bankruptcy in July.

Thursday, the U.S. Trustee's office filed with the Southern District of New York Bankruptcy Court for an independent examiner.

Celsius stated Monday it will be broke by October. But on Friday,  CFO Chris Ferraro says Celsius has enough money to fund operations through the end of the year.