The hearing to review the rehiring was scheduled for today, August 8. Investors also took issue with the decision to rehire Bolger.
Celsius Network has withdrawn its motion to rehire former CFO Rod Bolger. The company had planned to hire him to help with the bankruptcy process.
Lending platform Celsius withdrew its motion to hire former CFO Rod Bolger, according to a court filing from the Southern District of New York.
The company had filed a motion to hire Bolger earlier this month, saying it needed his expertise to help navigate the bankruptcy process.
The withdrawal of the motion takes place just before the hearing scheduled for August 8. Celsius had planned to rehire Bolger at a salary of $92,000 a month for a minimum period of six weeks.
Bolger had resigned from the company, serving the eight-week notice period. He was the former CFO of the Royal Bank of Canada and divisions of Bank of America.
Investors also took issue with the decision to rehire Bolger. Lawyers for some investors objected, saying Celsius offered “little detail” about why his expertise was needed.
A lawyer said the decision “reflects a level of callous disregard for Celsius’ clients.”
Celsius Still Going through Tough Times
The history of Celsius has been one fraught with drama, and it has yet to have a strong grip on the world’s attention at large. Meanwhile, its clients face a gloomy outlook, as it may be years before they have access to their funds.
The collapse of Celsius has drawn a lot of attention to investor protection in the crypto industry. Deposits at US banks are insured by the Federal Deposit Insurance Corporation for up to $250,000, while brokerage accounts are covered for up to $500,000.
The company also recently faced a data breach, which added to its problems. Last July 28, it posted an alert on Twitter, in which they informed that they “were recently informed by our vendor http://Customer.io that one of their employees accessed a list of Celsius client email addresses held on their platform and transferred those to a third-party.”
On top of it, in mid-July, an Arkansas resident also filed a class action lawsuit against the company, for selling unregistered securities, comparing the crypto lender’s operations to a Ponzi scheme.
This series of incidents does not make things any easier for Celsius as it tries to get out of its financial crisis.
Other News: Voyager Plans to Resume Withdrawals
There have been some positive developments in the Voyager case, which should bring some relief to customers. The company announced in a blog post that it would resume withdrawals of up to $100,000 in a 24-hour period beginning August 11.
Voyager recently received the go-ahead to return $270 million to its customers. It also reportedly has multiple offers on the table and even received one from Alameda Research and FTX.
Lawyers for the firm said this offer was low and the company is open to “serious proposals.”
The Voyager case remains worthy of attention and will have an eye-opening effect on the way forward for the crypto market. Like Three Arrows Capital and Celsius Network, it will serve as a lesson to the many cryptocurrency companies out there.
By Audy Castaneda