Crypto lending firm Celsius creditors have moved to subpoena-based Equities First, a lending firm which is involved in the Celsius bankruptcy.
This comes after Celsius' former CEO Alex Mashinsky said the company owed money from Equities First and when they tried to repay the loan, Equities First was unable to return the collateral.
Celsius creditors are now seeking information regarding the loan agreements between Celsius and Equities First.
In addition, they are also looking for the reason behind Equities First inability to pay back the $439 million collateral to Celsius.
Celsius is one of several crypto companies that has struggled to pay back its creditors, having gone bankrupt earlier this year due to market downturns.
The lending firm had tried many ways to pay off their debt, such as selling IOU (“I Owe You”) tokens and stablecoins they hold.
FTX’s Sam Bankman-Fried might bid on the bankrupt crypto bank’s assets.