US Court Approves Deadline for Celsius Customers to File Proofs of Claim

Customers of the bankrupt crypto lender have until Jan. 3, 2023, to file proofs of claim, if Celsius’ scheduling of their claims as filed are incorrect.

AccessTimeIconNov 21, 2022 at 8:21 a.m. UTC
Updated Nov 21, 2022 at 5:32 p.m. UTC

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

A U.S. court has approved collapsed crypto lender Celsius Network's request to set a deadline for customers to file proofs of claim in the ongoing bankruptcy proceedings.

Celsius' motion, approved by U.S. Bankruptcy Court of the Southern District of New York last week, requires customers to submit proofs of claim on or before Jan. 3, 2023. Any person or entity – including individuals, partnerships, corporations, joint ventures and trusts – are free to file a claim via mail, by hand or through the claims agent Stretto's website.

Following a liquidity crunch that rattled the industry earlier this year, crypto lending platform Celsius Network filed for bankruptcy in July, just weeks after freezing customer withdrawals. The lender filed for chapter 11 bankruptcy which allows it to reorganize while continuing operations.

Earlier this month, Celsius requested the New York-based court to extend its deadline for submitting the platform's reorganization plan.

Customers of the bankrupt lender do not need to submit a proof of claim if it falls into a number of categories listed in the legal document, including if any claims had already been paid by what remains of the company and if a similar form had already been filed with the clerk of the bankruptcy court in New York.

Celsius shared further instructions on how to file a claim on its official Twitter account on Sunday, and said its next hearing is scheduled for Dec. 5.

CoinDesk has reached out to Celsius for comment.

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Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

CoinDesk - Unknown

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.