Celsius wants to extend the deadline for claims as lawyer fees mount

Bankrupt crypto lender Celsius Network is readying to record a question that would widen the deadline for users to taxable their claims by different month.

The crypto assemblage has started to turn impatient, noting that Celsius’ lawyer fees person continued to stack up and are eating distant astatine the lender's estate.

In a Dec. 29 tweet, Celsius announced that it would question to widen the existent deadline for claims from Jan. 3 to aboriginal February. 

The bankruptcy tribunal is acceptable to perceive the question connected Jan. 10, and according to Celsius, the Jan. 3 deadline volition beryllium extended until astatine slightest then.

Celsius is preparing to record a question aboriginal this week requesting an hold of the barroom date, which is the deadline to record a claim, from January 3, 2023, until aboriginal February.

— Celsius (@CelsiusNetwork) December 29, 2022

The claims process allows creditors who judge they person a close to outgo to record claims during bankruptcy proceedings. Celsius’ creditors had made implicit 17,200 claims arsenic of Dec. 29.

However, Celsius’ creditors look antsy arsenic Celsius’ administrative fees person continued to rack up since it archetypal filed for bankruptcy successful July. A Dec. 27 Financial Times study noted that the fees charged by bankers, lawyers and different advisers successful the bankruptcy lawsuit had already reached $53 million.

As an example, a Dec. 15 interest connection from 1 of the instrumentality firms representing Celsius, Kirkland & Ellis, requested a fee of implicit $9 cardinal for enactment done during the months of September and October.

In comparison, lone $44 cardinal has truthful acold been earmarked by Celsius to be returned to customers. This wealth belongs to users who lone ever held funds wrong the Custody Program, and represents a number of the $4.72 cardinal of user deposits held by Celsius.

Some successful the crypto assemblage person been unimpressed with the latest postponement successful the proceedings, alleging that it’s yet different “delay tactic.” For example, 1 idiosyncratic noted “Stop wasting clip halt extending, conscionable spell connected with proceedings and springiness maine my wealth back!!!!” portion different simply said: “Stop wasting clip and my money.”

So the lawyers get millions but I wonderment what america tiny fry folks get?

— Chris (@browncoat1of1) December 29, 2022

Related: 7 biggest crypto collapses of 2022 the manufacture would similar to forget

Global concern level BnkToTheFuture laminitis Simon Dixon, who has been an progressive dependable successful the Celsius bankruptcy proceedings, noted successful a Dec. 23 tweet that by the clip users are capable to get their funds backmost from Celsius, they should lone expect astir to person astir hal what they enactment in.

Prepare yourself for 50% successful 6 months with #Celsius Chapter 11 to negociate your expectations | Focus connected your household implicit XMas & rebuilding successful 2023. https://t.co/E0WeDuPem0

— Simon Dixon (@SimonDixonTwitt) December 23, 2022

At the behest of Celsius, the U.S. trustee, and the unsecured creditors’ committee, justice Martin Glenn appointed chap justice Christopher Sontchi to beryllium a “fee examiner” connected Oct. 20. His occupation is to negociate and o.k. the fees acceptable by lawyers and different professionals successful the case.

The interest examiner is besides being paid retired of Celsius’ estate, with the latest interest connection submitted connected Dec. 21 requesting conscionable nether $20,000 for enactment done during November.