Bankrupt Crypto Lender Celsius Seeks Deadline Extension

Cryptocurrency lender Celsius Network said it is preparing to file a motion requesting a deadline extension for users to submit their claims by another month.

In its latest update, Celsius stated that the motion is scheduled to be heard by the bankruptcy court on January 10. The deadline will be extended until at least then.

“For now, the deadline is extended until the motion is heard by the Court. We will provide further updates on the bar date as they become available.”

• Celsius had filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York in July following the unraveling of the Terra ecosystem tokens.
• As per the court filing by consulting firm Kirkland & Ellis, the company had $2.8 billion in liabilities on its balance sheet.
• Celsius was also granted an extension to submit the Chapter 11 reorganization plan until mid-February.
• During the same time, bankruptcy judge Martin Glenn ordered the embattled crypto lender to return funds of around $44 million to customers that were not part of its yield-bearing accounts.
• Celsius account holders have taken up social media to voice out their outrage over taking to Twitter to complain about the costs and slow progress.

Lawyers & advisors like to spend client money just as much as @Mashinsky #Celsius & @SBF_FTX #FTX – All they need is good old Chapter 11 protection & magically it becomes legal. pic.twitter.com/G7cFzIb61z

— Simon Dixon (@SimonDixonTwitt) December 28, 2022

• Recently, Financial Times stated that costs are piling up for law firms associated with a series of crypto companies that have succumbed to the ongoing crypto winter.
• In the case of Celsius, the lawyers, bankers, and other advisers released detailed fee requests to the New York federal bankruptcy court totaling $53 million.
• To investors’ frustration, Kirkland & Ellis and White & Case are involved in Celsius and have top lawyers billing over $1,800 per hour.