The situation surrounding Celsius bankruptcy continues as U.S. regulators set a deadline for those affected to file a proof claim.
The Southern District of New York State of the United States Bankruptcy Court has approved a new filing deadline in the ongoing Celsius bankruptcy case. A deadline has reportedly been set for people submitting any claims against the erstwhile lender of digital assets.
Any person or entity that wishes to do so must submit a proof of claim by January 3, 2023, 5:00 pm EST. This includes individuals, partnerships, corporations, joint ventures, and trusts .On Twitter, Celsius posted a thread informing former users of the recent court deadline approval and providing step-by-step instructions on how to submit claims:
The choice was made not long after the independent examiner in the Celsius case claimed that the company’s management of customer funds was subject to “insufficient” accounting and operational controls.
Regulators have been closely monitoring Celsius’s actions. Customers claimed that the former cryptocurrency lender used the assets of new users to cover existing yields and facilitate withdrawals, prompting the judge overseeing the case to order an investigation into the possibility that Celsius was a Ponzi scheme on Nov. 1.
The judges also objected to the site being reopened for withdrawals and stablecoin sales. The case’s next court appearance is slated for December 5 of this year. Recent developments in the Celsius bankruptcy case follow the failure of yet another significant cryptocurrency network.
Another case where former users and investors who have lost money are at the mercy of the regulatory authorities is the ongoing FTX liquidity crisis that turned into a bankruptcy scandal.
One million or more creditors may be engaged in the FTX dispute, according to estimates. The defunct exchange announced on Nov. 20, five days after filing for Chapter 11 bankruptcy, that it is starting a strategic review of its worldwide assets in an effort to sell or reorganize.
It has been predicted by attorneys experienced in these types of legal proceedings that recovering money from FTX could take years, if not “decades.”Ironically, Sam Bankman-Fried, the former CEO of FTX, described how he would approach a bid to acquire Celsius’ assets back in early October.
