Celsius Network, a crypto lending company, is planning to extend the deadline for users’ claims till early February. This was announced via the company’s Twitter handle this morning.
The firm suspended withdrawals and transfers on its platform in June due to extremely unstable market conditions and a $1.19 billion deficit on its balance sheet. A month later, Celsius Network filed for Chapter 11 bankruptcy in the United States. The firm’s collapse erased $1 trillion from the crypto market and put a lot of investors into debt.
Celsius Network began a restructuring process to pay back customers. The company made a record of each customer account balance as of when withdrawals were halted.
Celsius also made room for the submission of proof of claim if the amount stated in the record is different from the user’s account balance. The expected deadline for proof of claim was January 3, 2023, before Celsius solicited extra time.
“Our goal is to provide account holders with additional time to file any proofs of claim. This motion is scheduled to be heard by the Court at our hearing on January 10, 2023. For now, the deadline is extended until the motion is heard by the Court. We will provide further updates on the bar date as they become available,” the company added.
The development didn’t sit well with most of the customers as they claimed Celsius Network was stalling and no refunds had been made. A Twitter user known as Arexprol said,
“Stop wasting time, stop extending, just go on with proceedings and give me my money back!!!!”
Simon Dixon, CEO of BnkToTheFuture.com, replied a worried customer saying;
“Prepare yourself for 50% in 6 months with #Celsius Chapter 11 to manage your expectations | Focus on your family over XMas & rebuilding in 2023.”
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