Defunct cryptocurrency lending firm Celsius Network has announced that a bankruptcy court has granted its motion to “set a deadline” for customers to file claims. According to the announcement, customers now have until January 3, 2023 to submit proof of their claim. Celsius further stated that its claims agent, Stretto, will communicate with customers regarding notification of deadlines and in the claim certification process through the contact information provided by customers and the Celsius app.

Customers of bankruptcy lenders are exempt from filing proof of claims if they fall into one of the categories listed in the legal document, for example, if any claims have already been paid by the remainder of the company and a similar form has been filed with the clerk of the New York Bankruptcy Court .

“As a reminder, customers who agree to the claims arrangements submitted by Celsius in the balance sheet are not required to submit proof of claims and no further action is required at this time with respect to such claims,” Celsius said on Twitter.

At the next hearing scheduled for December 5, the celsius he said They will discuss matters related to its Custody and Withhold service, which, according to an examiner, has deficiencies in its controls and operations.

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Celsius examiner Shoba Pillay found that the company was operating its hosting service “without adequate accounting and operational controls or technical infrastructure,” according to Bloomberg. Thus, Celsius failed to account for the 24% shortfall (approximately $50 million or Rs 406 crore) in escrow wallets on June 24.

Regarding the Withhold service, Pillay said Celsius has made no effort to isolate or individually identify any crypto assets associated with user accounts. To that end, “clients now face uncertainty about what assets, if any, belong to them when they file for bankruptcy protection,” Pillay added.


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