Celsius Continues To Try To Weather A Terrible Storm

Latest Developments in Celsius Bankruptcy Proceedings

•Bankrupt crypto lender Celsius will file a petition requesting an extension of the deadline for users to submit their claims in the ongoing bankruptcy proceedings by another month.

• The company said the extension is needed “to provide account holders with additional time to file any proofs of claim.”

• According to the firm’s claims agent Stretto, creditors have filed more than 17,200 claims as of today.

• Earlier this month, the U.S. bankruptcy judge responsible for the Celsius case ordered the bankrupt crypto lender to return around $44 million worth of cryptocurrencies to customers of Celsius’ Custody and Withhold accounts.

• A possible extension of the deadline for Celsius’ customers to submit their claims is likely to anger many of the firm’s customers.

Nearly a year ago, Celsius, a prominent cryptocurrency lender, declared bankruptcy following a series of financial missteps. Since then, there have been numerous developments in the case that have had a direct impact on affected customers’ rights and potential for restitution. The road has been rough with a multitude of roadblocks and setbacks each having to be overcome by the team at Celsius as they continue to weather this very turbulent storm.

Details of Court-Ordered Return of Crypto Funds

Since the bankruptcy, Celsius’ crypto users across the world have been eagerly awaiting news surrounding the company’s bankruptcy filings, and it seems they will be getting more than they could’ve asked for. Recently, the crypto lender has requested permission to file a petition extending the deadline for claims submission by an additional month. If approved, this extension would provide a greater opportunity for users to successfully submit their claims and receive a fair outcome. Although the process of filing claims is still quite lengthy and complicated, users will now have another chance to ensure that all their concerns are addressed prior to the proceeding’s conclusion. Hopefully, this extension will bring about greater transparency in the process and signify an effort from Celsius to protect its customers throughout the bankruptcy proceedings.

Extension Request for Deadline to File Claims

To address these concerns and ensure that affected customers receive their rightfully due payments as quickly as possible, attorneys representing creditors recently requested an extension on the deadline for filing claims against Celsius. This request was made due to reports that only 500 claims have been filed so far—far fewer than expected given the number of affected customers. The request seeks an extension of up to three months beyond January 2023 in order to allow more time for creditors to file claims against Celsius’s parent company and its assets.

Potential Impact and Reactions from Affected Customers  

The delay in returning these crypto funds could potentially have serious financial impacts on some creditors who were depending on restitution from Celsius’s bankruptcy proceedings to help them meet their financial obligations or recover losses incurred when investing with Celsius prior to its collapse. As such, many creditors are understandably frustrated by this delay and its potential implications for their finances. Additionally, some customers have expressed anger over this situation due to concerns about whether they will ever see their money again or if it has already been lost in limbo due to these delays.            

Waiting anxiously

As you can see, the latest developments in the case of Celsius’s bankruptcy proceedings have left many affected customers feeling uncertain about when they can expect restitution or even whether they will get it at all. While attorneys representing creditors have requested an extension on filing claims against Celsius’s parent company and its assets which could help speed up restitution efforts—there is still no guarantee that those requests will be granted or how long it may take before any repayment begins if it does happen at all. Ultimately only time will tell how this situation plays out but one thing is certain—those who were impacted by Celcius’s bankruptcy will continue waiting anxiously until a resolution is reached either way.​

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