A US court has upheld a request from bankrupt crypto lender Celsius to set a deadline for customers to submit proof of the company’s claim in ongoing bankruptcy cases.
Celsius’s motion, which was upheld by the U.S. Bankruptcy Court for the Southern District of New York last week, requires clients to submit proof of claim no later than January 3, 2023.
Celsius Gets Court Approval
After a liquidity crunch that rocked the industry earlier this year, crypto lending platform Celsius Network filed for bankruptcy just weeks after freezing customer withdrawals. The company has filed for chapter 11 bankruptcy, which will allow it to be restructured as it continues operations.
Earlier this month, Celsius asked the New York court to extend the deadline for submitting the platform’s restructuring plan.
Customers of insolvent lending companies are not required to provide proof of claim if they fall into several categories listed in the legal document, including if any claim has already been paid by what is left of the company and a similar form has already been paid.
Celsius shared detailed instructions on how to file a lawsuit on his official Twitter account and said the next hearing will take place on December 5.
This week, the bankruptcy court approved our motion to set the bar date, which is the deadline for all customers to file a claim. The bar date has been set for January 3, 2023.
— Celsius (@CelsiusNetwork) November 20, 2022
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