Celsius Network extends bar date as legal struggles continue

Celsius Network, a popular crypto lender, has recently filed for bankruptcy and has announced that it has filed a motion to extend the bar date. 

Celsius Network extends bar date

The bar date is the deadline for all customers to file a claim against the debtor in bankruptcy. It is a crucial date for creditors as it is the last opportunity for them to file a proof of claim in the bankruptcy case, and Celsius Network just filed a motion to extend the bar date for its clients.

Celsius Network filed for chapter 11 proceedings in a US court in July of 2022, during the midst of a brutal crypto crash that saw the industry lose approximately $2 trillion. The exchange had only $167 million left in its accounts and froze all customer withdrawals in an effort to seek out more funds.

Before filing for bankruptcy, Celsius reportedly held 11 stablecoins totalling around $23 million. In an effort to generate more liquidity and keep its business operations going, the company filed a request on Sept.15 for approval to sell the stablecoins.

Celsius Network faces legal and financial struggles

Since July 2022, Celsius has faced a series of legal issues. This includes a class action lawsuit filed by Braga Eagel & Squire, P.C., a US law firm. The suit includes multiple crypto-focused projects as defendants, with Celsius specifically named in the press release. Alexander Mashinsky, one of the network’s owners, is also named in the lawsuit.

The suit is just one of the problems facing Celsius. The lending firm has faced backlash from various parties, leading to its current financial struggles. Despite these challenges, Celsius has made efforts to address the situation.