Celsius’ Request Approved For Claims Submission Deadline

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Will Celsius Bankruptcy Filing Safeguard It From Crashing Down?
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  • Celsius states that its claims representative, Stretto, would contact affected consumers.
  • Also, the Celsius app will send a notice to users.

Insolvent crypto lender Celsius has been granted permission by the U.S. Bankruptcy Court for the Southern District of New York to impose a deadline for claim submissions from creditors. Celsius states that its claims representative, Stretto, would contact affected consumers via email or postal mail to inform them of the bar date and their next actions.

Celsius stated:

“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.”

Whopping $1.2 Billion Hole

Also, the Celsius app will send a notice to users. Several exceptions to the need of submitting evidence of claim were also detailed in the court’s order. Customer claims that are not listed as “disputed,” “contingent,” or “unliquidated” and for which the claimant does not dispute the size, nature, or priority of the claim are examples of these.

After the crypto market collapsed in June, Celsius was one of the first large crypto lenders to halt customer withdrawals. The company was silent for weeks before filing for Chapter 11 bankruptcy and disclosing $1.2 billion in damages.

Alex Mashinsky, the CEO of Celsius, resigned in September after he was accused of being responsible for a string of bad bets in early 2022. As much as $10 million was withdrawn from the company’s account by Mashinsky in May, weeks before the business stopped withdrawals.

The Vermont Department of Financial Regulation claimed in September that Celsius’ CEO, Alex Mashinsky, had lied to investors about the company’s financial stability when he said it was solvent while in fact, it had been bankrupt since 2019.

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