On the 29th of December, Celsius Network, the bankrupt crypto lender, announced that it would file a petition requesting an extension of the deadline for users to submit their claims in the ongoing bankruptcy proceedings of the lender. Today, in a tweet, the crypto lender wrote that Celsius is preparing to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim, from the 3rd of January 2023, until early February.
Regarding the reason behind this upcoming petition from it, Celcius said that the extension is needed to provide account holders with extra time to file any proof of claim. In a tweet, the crypto lender claimed that the motion is scheduled to be heard by the bankruptcy court on the 10th of January, 2023. The deadline is extended until the motion is heard by the Court, the firm added.
According to Stretto, the claims agent of the crypto lender, as of today, on the 29th of December, the creditors of Celcius, who believe they are entitled to the return of funds, have filed more than 17,200 claims. And earlier this month, the US bankruptcy judge Martin Glenn overseeing the Celcius bankruptcy case ordered the crypto lender to return around $44 million worth of cryptocurrencies to customers of Custody and Withhold accounts of Celcius.
The possible extension of the deadline, which the crypto lender is going to request, is likely to anger many of the firm’s customers. According to the 16th of December report from Bloomberg, the lawyers and other advisers in the Celsius case had also been seeking around $53 million in legal fees for their services since the firm filed for bankruptcy.