New Filing Deadline for Claims Against Celsius

•The U.S. Bankruptcy Court in the southern district of New York State approved a new filing deadline for those filing any claims against the former digital assets lender, Celsius.

• Any person or entity who wishes to file a claim against Celsius must submit a proof of claim by Jan. 3, 2023, 5:00 pm EST.

• The decision came shortly after the independent examiner in the Celsius case made an allegation that the company had “insufficient’ accounting and operational controls in its management of customer funds.

The U.S. Bankruptcy Court in the southern district of New York State approved a new filing deadline for those filing any claims against the former digital assets lender, Celsius. Any person or entity who wishes to file a claim against Celsius must submit a proof of claim by Jan. 3, 2023, 5:00 pm EST.

This decision comes shortly after the independent examiner in the Celsius case made an allegation that the company had “insufficient’ accounting and operational controls in its management of customer funds. The examiner’s report also stated that there was a “substantial risk that customers’ funds were misused and/or diverted.”

Celsius was forced to file for bankruptcy in December of last year after it was revealed that the company had lost millions of dollars in customer funds. The company ceased operations in January of this year and laid off all of its staff.

Celsius is not the only digital assets lender to have faced liquidity issues in recent months. Bitrue, a Singapore-based digital assets exchange, announced last week that it was facing liquidity issues and would be forced to close down its operations.

What This Means for Creditors

The new filing deadline gives creditors more time to come forward and file a proof of claim against Celsius. Qualified creditors will have their claims assessed and may be eligible to receive a portion of the money owed to them by the company.

It is important to note that this is not a contest or auction; rather, it is an opportunity for creditors to have their outstanding debts recognized by the court so that they can be paid back from the proceeds of Celsius’s estate—if there are any left after legal fees and other expenses are paid.

If you are a creditor who is owed money by Celsius, you should consult with an attorney to discuss your options and determine whether or not filing a proof of claim makes sense for you.

The new filing deadline set by the bankruptcy court gives creditors more time to come forward and claim what they are rightfully owed by Celsius. If you believe you are owed money by the company, you should speak with an attorney to discuss your legal options and decide if filing a proof of claim is right for you given your individual circumstances.

celsiis filing

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