The ongoing bankruptcy proceedings of struggling cryptocurrency lender, Celsius have arrived at a new height. In the latest development, a U.S court has backed the firm to set a deadline for customers to file proof of claim.
The crypto lender made the revelation yesterday via a post on Twitter. As revealed, the U.S Bankruptcy Court of Southern District of New York gave Celsius a go-ahead with its motion that require customers to submit proofs of claims before January 3, 2023.
Further, the crypto lender submitted that individuals, partners, corporations and every affected customer can file their claims through the mail, by hand or through Stretto’s homepage. Stretto is Celsius’s claim agent. Additionally, the firm added that customers should expect to receive a notice regarding the bar date and subsequent development.
Meanwhile, Celsius disclose that customers who agree with its scheduling of their claims filed in the Schedules of Assets and Liabilities do not need to submit proof of claim. More so, the crypto lender said these categories of customers do not need to take part in any of the proceedings at the moment.
The crypto lender added that it’s monitoring the environment across the industry to determine its next line of action. However, Celsius assured its customer that the safety of data and security remains a top priority despite the prevailing crisis.
Lastly, the firm divulged that the next hearing of its Bankruptcy proceedings will come up on December 5, 2022. In the next hearing, the firm intended to advance the discussion about Custody and Withhold accounts and many others.
Crisis surrounding Celsius
Due to the general downturn the cryptocurrency market experienced this year, numerous firms in the industry including Celsius plunged into crisis. In July, the cryptocurrency lender filed for bankruptcy after halting withdrawals from its platform.
Before the crisis, Celsius has more than $10 billion in assets with more than 1.7 million users on its platform. Earning the firm a strong reputation in the industry, however, the reputation has declined swiftly due to the crisis.
The crisis compelled Celsius to file for chapter 11 to gain protection while restrategizing to restart operations. This month, the firm asked the New York court to prolong its deadline for revealing the cryptocurrency lender’s plan to restart operations.