Bankruptcy crypto lender Celsius sets payment date for January 3, 2023 after court approval

Defunct crypto lender Celsius Network has announced that the bankruptcy court has approved its request to “set a bar date” for customers to file claims. According to the announcement, customers now have until January 3, 2023 to submit proof of claims. Celsius adds a bar date notice and steps to demonstrate the claim process will be communicated to the customer through their provided contact information and the Celsius app, by the claim agent their compensation, Stretto.

Bankruptcy lender customers are exempt from filing proof of claims if they fall into one of the categories listed in legal documents, such as if any claims have been paid by what remained of the company and a similar form was filed with the clerk of the bankruptcy court in New York.

“I repeat, customers who agree with poison’ planning their claims as filed in the Assets and Liability Directory do not need to submit proof of claim and they do not need to take any further action at this time on that claim.” , C said on Twitter.

In the next trial, scheduled for December 5, degrees Celsius he said they will discuss issues related to its Depository and Retention services, which, according to one examiner, contained control and operational deficiencies.

Like According to a Bloomberg report, Shoba Pillay, judge of Celsius found that the company operating its Depository service “does not have sufficient accounting and operational control or technical infrastructure.” As a result, Celsius did not account for a 24% shortfall (about $50 million or Rs. 406 crore) in the custodial wallet on June 24.

As for the Retention service, Pillay said Celsius makes no effort to isolate or separately identify any crypto assets associated with users’ accounts. And because of that, “customers now face uncertainty about which assets, if any, belong to them when they file for bankruptcy,” Pillay added.