Celsius Bankruptcy Victims Gain Claim Deadline Evidence From US Court

Celsius Bankruptcy Victims Gain Claim Deadline Evidence From US Court

The pending Celsius bankruptcy case continues as the United States Bankruptcy Court in the Southern District of New York has approved a new filing deadline.

A deadline has been set for those filing claims against the former digital asset lender, according to an official document. Any person or entity – which includes individuals, partnerships, corporations, joint ventures and trusts – desiring to do so must file a Proof of Claim by January 3, 2023, 5:00 p.m. Eastern Time.

Celsius himself made a thread on Twitter, informing his former users about the recent passing of the court deadline, along with step-by-step information on how claims are made:

The decision came shortly after the independent investigator in the Celsius case claimed the company had “insufficient” accounting and operational controls in managing client funds.

Celsius’ activities are under the watchful eye of regulators. A November 1 court ruling from the judge overseeing the case ordered a probe to investigate the possibility of Celsius as a Ponzi scheme, as clients alleged that the former crypto lender used new users’ assets to leverage existing proceeds. cover and facilitate recordings.

In addition, the courts objected to a reopening of the platform for withdrawals and sales of stablecoins. The next court hearing in the case is scheduled for December 5 this year.

Related: Celsius users concerned about personal information revealed in bankruptcy case

Developments in the Celsius bankruptcy case come on the heels of yet another major crypto platform going under. The ongoing FTX liquidity crisis turned bankruptcy scandal is yet another case where former users and lost money investors are at the mercy of regulators.

It is speculated that more than 1 million creditors are involved in the FTX case. On Nov. 20, five days after it filed for Chapter 11 bankruptcy, the defunct exchange announced it is beginning a strategic review of its global assets to try to sell or reorganize.

Lawyers familiar with these types of court proceedings have speculated that getting money back from FTX could be a process of years, possibly “decades”.

Ironically, in early October, former FTX CEO Sam Bankman-Fried outlined how he would proceed with a bid to acquire Celsius’ assets.