Bankruptcy: Celsius to extend claim deadline

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Crypto Regulation
Bankruptcy: Celsius to extend claim deadline

Celsius, once a well-known cryptocurrency lender with over 1.7 million users handling over $10 billion in assets, filed for bankruptcy protection in July 2021.

The exchange filed for bankruptcy protection due to financial difficulties caused by a downturn in the cryptocurrency market. It is crucial for stakeholders to be aware of the approaching final date and take the necessary steps to submit their claims before the deadline.

Reason for request extending bar date

This request for an extension comes at an important time for the company, as it is facing a number of challenges and a tight deadline for filing claims. And this kind of request is likely to be met with both support and criticism by stakeholders.

Celsius stakeholders  only have a limited time left to file a claim in the company’s bankruptcy case. The final day for stakeholders to submit a proof of claim, is set for Jan.3, 2023. If a petition is not submitted by this date, some stakeholders may not be eligible for payouts from the case.

The company has taken its request for an extension of the bar date and has garnered attention from both within and outside the company. The bar date is a critical deadline that impacts the ability of the company to file claims and move forward with important business matters.

Significant impact on the future of the company

This move comes as the company’s legal fees continue to mount, causing concern among the bitcoin community. In response to these concerns, Celsius announced on Dec.29 that it would try to extend the current deadline, which is set for Jan.3, to early February. The extension will be considered at a bankruptcy court motion hearing on Jan.10.

But it is likely that the decision will have a significant impact on the future of the company. It remains to be seen how the extension will affect the timeline for resolving claims and other important matters related to the company. 

Regardless of the objections that may be raised, it is clear that Celsius is taking proactive steps to address the issues it is facing and to ensure that it is able to move forward in a stable and sustainable manner. It’s likely that its efforts to extend the bar date will be viewed as a necessary and responsible move in the long-term interests of the company and its stakeholders.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.