Cryptocurrency lending company Celsius Network, which has gone out of business, has announced that a bankruptcy court has granted its request to “set a deadline” for clients to file a claim. According to the announcement, customers now have until January 3, 2023 to submit their evidence of claims. Celsius also said that notice will be sent on the bar date, and steps to establish the claim process with customers via the contact information provided to them and the Celsius app, through the claims agent, Stretto.
A bankrupt lender’s clients are exempt from filing proof of claim if they fall into one of the categories listed in the legal document, such as if any claims have already been paid by the remainder of the company and a similar form has already been filed with the clerk of the New York bankruptcy court.
As a reminder, clients who agree to Celsius scheduling their claims as filed in the assets and liabilities tables need not provide proof of claim and no further action is required from them at this time in connection with such claim. https://t.co/zymkBeyZm5
– Celsius (@CelsiusNetwork) November 20, 2022
As a reminder, customers who agree with them Celsius’ Celsius said on Twitter that their claims tabulators as filed in the assets and liabilities tables need not provide evidence of the claim and no further action is required from them at this time in connection with this claim.”
At the next court session, scheduled for December 5, Celsius said They will discuss matters relating to custody and withholding services, which, according to the examiner, suffer from a lack of controls and processes.
as such According to a Bloomberg reportSobha Pillai, the percentile examiner, found that the company operated the custodial service “without adequate accounting and operational controls or technical infrastructure”. Hence, Celsius failed to calculate a deficit of 24 percent (approximately $50 million or Rs. 406 crore) in the custodial portfolios on June 24.
As for the blocking service, Pillay said Celsius made no effort to separate or identify any crypto assets associated with user accounts. To that end, “clients now face uncertainty as to what, if any, assets they hold as of filing for bankruptcy,” Pillay added.