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
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.