US court sets deadline for Celsius bankruptcy claimants
Terrill Dicki Nov 21, 2022 03:05
The U.S. Bankruptcy Court in New York State has approved a new filing deadline for former Celsius users to make claims against the former digital assets lender. Any person or entity - which covers individuals, partnerships, corporations, joint ventures and trusts - who wishes to do so must submit a proof of claim by Jan. 3, 2023, 5:00 pm Eastern Time. The decision comes after independent examiner made an allegation Celsius had 'insufficient' accounting and operational controls.
The Celsius bankruptcy case is still pending in the United States Bankruptcy Court for the southern district of New York State, which has established a new deadline for the submission of documents related to the case.
Those who intend to register any claims against the former digital asset lender are advised to do so before the deadline that has been established, which is stated in an official document.
Whoever chooses to do so is required to provide evidence of claim no later than January 3, 2023 at 5:00 p.m. Eastern Time. This includes individuals, partnerships, companies, joint ventures, and trusts.
Celsius created a thread on Twitter to remind its former users of the recent court deadline approval along with detailed information on the filing process for claims.
The judgement was taken not long after the independent examiner who was looking into the Celsius case made an accusation that the corporation had "insufficient" accounting and operational controls in its administration of client monies.
The actions of Celsius have been subject to the constant surveillance of authorities.
Customers alleged that the former cryptocurrency lender used the assets of new users to cover existing yields and facilitate withdrawals, which resulted in a court ruling being issued on November 1 by the judge who was presiding over the case. The ruling ordered an investigation into the possibility that Celsius was a Ponzi scheme.
The lawsuit is set to proceed in court once again on December 5 of this year, when the next scheduled hearing occurs.
The latest developments in the bankruptcy case involving Celsius come on the wake of the failure of yet another major cryptocurrency platform.
The present liquidity problem at FTX, which has developed into a bankruptcy scandal, is just one more instance in which authorities need to assist previous customers and investors who have suffered financial losses.
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