Celsius customers have until January 3rd to submit proof of claim

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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. According to the announcement, customers now have until January 3, 2023 to submit their proof of claims. Celsius further said a bar date notice, and steps for the proof of claims process will be communicated to the customers through their provided contact details and the Celsius app, by its claims agent, Stretto.

Clients of the bankrupt lender are exempt from filing proof of claim if they fall into any of the categories listed in the legal document, for example if any claims have already been paid by what remains of the business and a similar form has been filed with the clerk of the bankruptcy court in New York.

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

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At the next court hearing, scheduled for December 5, Celsius said they will discuss matters related to the Custody and Withhold services, which an investigator said had deficiencies in controls and operations.

According to a Bloomberg report, Celsius researcher Shoba Pillay found that the company was operating its Custody service “without adequate accounting and operational controls or technical infrastructure.” Consequently, on June 24, Celsius failed to account for a 24 percent shortfall (approximately $50 million or Rs. 406 crore) in custodial portfolios.

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Speaking to the Withhold service, Pillay said Celsius made no effort to separate or separately identify crypto assets associated with users’ accounts. And that’s why “customers now face uncertainty about what assets, if any, were theirs as of the bankruptcy filing,” Pillay added.


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