Customers of the collapsed cryptocurrency lender Celsius have until January 3 to submit claims. The bankruptcy court authorized the January deadline, sometimes referred to as a "bar date." Customers of Celsius have until January 3, 2023 to submit a claim in the company's bankruptcy action.
What happens after Jan 3rd?
The bar date, or the final day creditors may submit a proof of claim against the discredited cryptocurrency lender, was set by the bankruptcy court hearing Celsius's case on January 3. After that time, unclaimed creditors could not be entitled for payouts from the case. Celsius filed for bankruptcy protection in July following a decline in the cryptocurrency market in the spring that put the company in difficulties. At its height, Celsius (1) claimed to have more than 1.7 million customers and handled more than $10 billion in assets.
Customers may anticipate hearing from Stretto (2), our claims agent, by email, regular mail for those who have an address on file, and a message in the Celsius app with the bar date and further stages in the proofs of claim process, Celsius stated on Twitter on Sunday. Customers who accept Celsius's scheduling of their claims don't need to take any further action. On December 5, the business claims it will address custody and withhold accounts at the next Celsius hearing.
This week, the bankruptcy court approved our motion to set the bar date, which is the deadline for all customers to file a claim. The bar date has been set for January 3, 2023.
— Celsius (@CelsiusNetwork) November 20, 2022
How will this impact Celsius ?
The motion also asks the court to set a claim ceiling equal to the claim's value in US dollars as of the filing date of the bankruptcy petition, which will further polarize the Celsius case. This effectively means that if bitcoin prices rise throughout the proceedings, equity holders rather than customers—will benefit. But if cryptocurrency falls, customers suffer. According to Thomas Braziel, founder of bankruptcy investment expert 507 Capital, this is a major bombshell that is going to alienate the whole creditor body and constituents. "In the Celsius situation, it may result in World War III."
