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The Federal Trade Commission Wants to Investigate the Bankruptcy of Celsius


On Tuesday, the Federal Trade Commission submitted a petition to join the bankruptcy case of cryptocurrency lender Celsius.


According to court documents, FTC attorneys Katherine Aizpuru and Katherine Johnson have asked to represent the commission in the case. Johnson applied to “represent the Federal Trade Commission in the above-referenced jointly administered cases and any related adversary proceedings,” according to a filing.

The court had not yet officially approved the FTC lawyers’ requests as of press time. When the consumer protection agency believes sensitive consumer information may be exposed as a result of the company’s dissolution, it has intervened in other bankruptcy proceedings, such as that of an education technology company in 2014. The sensitivity of personal data may add another layer of complexity to bankruptcy proceedings.

In July, Celsius declared bankruptcy. Since then, creditors and American regulatory bodies have attempted to shape the process and outcome. The US government is seeking the appointment of a third-party examiner in the wake of allegations that Celsius made misleading statements.