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Court Approves Celsius’ Motion To Set Deadline for Customers To File Claims

Cointime Staff· 2 min read

Celsius’ customers that disagree with the company’s scheduling of claims filed in the Schedules of Assets and Liabilities now have until January 3rd, 2023, to file their claims.

Defunct cryptocurrency lending company Celsius Network has announced that the bankruptcy court has granted its motion to “set the bar date” for customers to file a claim. Per the announcement on Sunday, the customers now have until January 3rd, 2023, to file their proof of claims.

Bankrupt Crypto Lender Celsius Sets Bar Date on January 3rd

Celsius further said a notice on the bar date, and steps to the proof of claim process will be communicated with the customers via contact info and the Celsius app, by its claims agent, Stretto. However, this concerns only the customers who feel that the company’s scheduled claim information, as filed in the Schedules of Assets and Liabilities, is incorrect or incomplete.

“As a reminder, customers who agree with Celsius’ scheduling of their claims as filed in the Schedules of Assets and Liabilities do not need to submit a proof of claim and no further action is required of them at this time with respect to such claim,” Celsius said on Twitter.

In the next court hearing, scheduled for December 5th, Celsius said they will discuss matters relating to its Custody and Withhold services, which according to an examiner, had shortfalls in controls and operations.

Celsius Had Poor Control and Accounting for Custody and Withhold Accounts

As Bloomberg reported, Celsius examiner Shoba Pillay found that the company operated its Custody service “without sufficient accounting and operational controls or technical infrastructure.” Consequently, Celsius failed to account for a shortfall of 24% shortfall (about $50 million) in Custody wallets on June 24th.

For the Withhold service, Pillay said Celsius made no effort to segregate or separately identify any crypto assets associated with the users’ accounts. And for that, “customers now face uncertainty regarding which assets, if any, belonged to them as of the bankruptcy filing,” Pillay added.

(By Ibiam Wayas )

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