Bankrupt Celsius Seeks Deadline Extension For Account Holders To File Claims

Defunct cryptocurrency lending and borrowing platform Celsius is preparing to file a motion to extend the bar date for its account holders, as part of its ongoing bankruptcy proceedings.

The bar date, also known as the deadline to file a claim, is currently set for Jan. 3, 2023.

However, Celsius is requesting an extension until early February in order to give account holders additional time to file any proof of claim.

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According to the company, this motion is scheduled to be heard by the Court on Jan. 10 next year.

Celsius stated that it will provide further updates on the bar date as they become available.

According to claims agent Stretto, over 17,200 creditors of Celsius have filed claims stating that they believe they are entitled to the return of their funds.

Fees Skyrocket

Meanwhile, Financial Times reported that the fees charged by bankers, lawyers, and other advisers in the bankruptcy case have already reached $53 million.

For instance, a fee statement from the law firm Kirkland & Ellis, which represents Celsius, requested a fee of more than $9 million for work completed in September and October.

Earlier this week, BnkToTheFuture.com co-founder and CEO Simon Dixon opined that Celsius creditors can expect only 50% of what they owe to the company over the next 6 months.

Prepare yourself for 50% in 6 months with #Celsius Chapter 11 to manage your expectations | Focus on your family over XMas & rebuilding in 2023. https://t.co/E0WeDuPem0

— Simon Dixon (@SimonDixonTwitt) December 23, 2022

Next: Did You Invest In Celsius? 5 Reasons You May Have Lost Your Money

Image: Celsius