Celsius has been making it to the crypto news headlines recently. Just a day back, customers who held crypto in custody accounts at the lending firm had come together and hired legal counsel to retrieve their funds.
In the latest development, the bankrupt lending firm intends to re-hire it ex-CFO Rod Bolger and pay him about $92,000 monthly, distributed over at least six weeks. The motion filed with the Southern District of New York read,
“In consideration for the advisory services rendered by Mr. Bolger, the Debtors agree to pay Mr. Bolger the sum of CAD $120,000 per month, prorated for partial months.”
Why is Celsius betting on Bolger?
CNBC reported that per the motion filed by Celsius, the firm “needs” Bolger to “help it navigate bankruptcy proceedings” as an advisory. The motion further highlighted that Bolger had previously led efforts to keep the business steady during turbulent phases.
Additionally, the filing revealed,
“Because of Mr. Bolger’s familiarity with the Debtors’ business, the Debtors have requested, and Mr. Bolger has agreed pending the Court’s approval, to continue providing advisory and consulting services to the Debtors pursuant to an Advisory Agreement.”
Now, it is up to New York’s Southern District to take a call on whether or not to green-light Bolger to re-join Celsius. Notably, a Zoom hearing is set for Monday, 8 August, to consider the motion.
Here it is worth recalling that the exec resigned from Celsius towards the end of June, around three weeks post the firm halted its withdrawals, citing market conditions.
Back in the day, when the exec worked full-time as CFO, he had a base salary of $750,000 and a performance-based cash bonus of up to 75% of his base, in addition to stock and token options. Thus, per the motion, the top of his total income range was around $1.3 million. In his previous stints, Bolger has worked with Citi, Bank of America, and the Royal Bank of Canada.
A Celsius investor and a CPA have filed an objection to challenge Celsius’ motion to bring back its ex-CFO. The claimants highlighted that the firm cited that Bolger’s services are necessary but provided little detail.
“Other than these generalities, the Motion provide no specifics as to why the services of Mr. Bolger are necessary.“
The motion also highlighted that Bolger provided “false information” to depositors just days before the pause. The plaintiffs highlighted that the exec was featured in an article where he misstated the financial condition and liquidity of the debtors. The same proved that Bolger was either not well informed about the debtors’ financial situation or intentionally misled the depositors/investors of the lending firm.
Using the afore-highlighted arguments, the plaintiffs have requested the court to deny Celsius’ motion.