Bankrupt crypto lender Celsius sets cash date as January 3, 2023 after court approval

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The defunct cryptocurrency lending company Celsius Network has announced that the bankruptcy court has granted its request to “fix the lockup date” so customers can file a claim. According to the announcement, customers now have until January 3, 2023 to submit their Proof of Claims. Celsius further informed that a notice of the cash date and steps to claim proof of claim will be communicated to customers through the contact information they provide and the Celsius app by its claims agent, Stretto.

Customers of the insolvent lender are exempt from providing proof of debt if they fall into any of the categories listed in the legal document, e.g. B. If claims have already been paid by the remains of the company and a similar form has already been filed with the Clerk of the Bankruptcy Court in New York.

“As a reminder, customers who consent to Celsius’ classification of their claims as set out in the Schedules of Assets and Liabilities are not required to submit Proof of Claim and there is no further action by them in relation to this at this time.” Claim required,” Celsius said on Twitter.

In the next court hearing scheduled for December 5, said Centigrade They will discuss matters related to its custody and withhold services, which an auditor said had deficiencies in controls and operations.

According to a Bloomberg report, Celsius auditor Shoba Pillay found that the company had operated its custody service “without adequate accounting and operational controls or technical infrastructure.” As a result, as of June 24, Celsius failed to account for a 24 percent shortfall (around US$50 million or Rs.4.06 billion) in deposit wallets.

For the Withhold service, Pillay said Celsius made no efforts to segregate or separately identify crypto assets associated with users’ accounts. And “customers now face uncertainty as to what, if any, assets they owned at the time they filed for bankruptcy,” Pillay added.

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