The US Bankruptcy Court in the New York State’s Southern district approved a new deadline for filing the Celsius bankruptcy case. An official document says the deadline was set for those who file claims against the former lender of digital assets.
Any entity or person that covers individuals, corporations, partnerships, trusts, and even joint ventures can submit their proof of claim by 2023, on January 3, until 5:00 pm EST. Celsius even made a Twitter thread on how to file the claims.
The court decision arrived shortly after the Celsius case’s independent examiner alleged that there aren’t sufficient operational and accounting controls in the customer funds’ management at Celsius. Regulators have always kept an eye on Celsius and its activities.
The court ruling from November 1 had a judge overseeing Celsius and its case. Since then, an investigative probe has been sent to analyze if the company runs any Ponzi scheme. This is because Celsius customers claimed new user assets were used for facilitating withdrawals and covering existing yields.
In addition, the courts objected to the platform’s reopening. According to this objection, Celsius should not be approved for conducting stablecoin sales and allowing withdrawals. The next date for a new court hearing, in this case, should be December 5, 2022.
The bankruptcy case of Celsius came to the public’s attention as another crypto platform with high liquidity is going under. The crisis at FTX is another bankruptcy scandal that left former investors and users who lost funds in the hands of regulators.
It’s speculated that more than 1 million creditors are involved in the FTX scandal. On November 20, 5 days after FTX filed for bankruptcy on Chapter 11, the exchange announced that it’s starting to review its global assets for reorganization and sales strategically.
