Celsius customers have time till January 3 to file proof of claim

Defunct crypto lending company Celsius Network has announced that the bankruptcy court has granted its motion to “set a bar date” for customers to file claims. As per the announcement, customers now have time till January 3, 2023, to file their proof of claims. Celsius further said that a notice on the bar date, and steps for proof of claim processing will be communicated to customers by its claims agent, Strato, through the contact information provided by them and through the Celsius app.

Customers of the insolvent creditor are exempted from submitting proof of claim if they fall into one of the categories listed in the legal document, such as any claim that has already been paid by the residuals of the company and so on. The form has already been filed. Clerk of the bankruptcy court in New York.

“As a reminder, customers who agree to Celsius’ Proof of claim is not required to be submitted to determine their claims as recorded in the Schedules of Assets and Liabilities and no further action is required in respect of such claim at this time,” Celsius said on Twitter.

Next hearing in court on December 5 Celsius said They will discuss matters related to its custody and withholding services, which according to one examiner were lacking in control and operations.

as According to Bloomberg report, Celsius examiner Shoba Pillai found that the company operated its custody service “without adequate accounting and operational controls or technical infrastructure”. As a result, Celsius failed to account for the 24 percent shortfall (approximately $50 million or Rs 406 crore) in the custody wallet on June 24.

As for the withhold service, Pillay said Celsius made no attempt to withhold or segregate any crypto assets linked to users’ accounts. And for that, “clients now face uncertainty as to which assets, if any, were theirs as of the bankruptcy filing,” Pillai said.