Bankrupt Celsius Seeks to Extend Claims Deadline for Burned Users

Bankrupt crypto lender Celsius will file a petition requesting an extension of the deadline for users to submit their claims in the ongoing bankruptcy proceedings by another month.

“Celsius is preparing to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim, from January 3, 2023, until early February,” the company said late on Wednesday.

The firm said the extension is needed “to provide account holders with additional time to file any proofs of claim.”

The company added the motion is scheduled to be heard by the bankruptcy court on January 10, 2023, with the current claims deadline set for the same date.

Celsius’ creditors, who believe they are entitled to the return of funds, have filed more than 17,200 claims as of today, according to the firm’s claims agent Stretto.

Celsius’ legal fees mount

Earlier this month, the U.S. bankruptcy judge responsible for the Celsius case ordered the bankrupt crypto lender to return around $44 million worth of cryptocurrencies to customers of Celsius’ Custody and Withhold accounts.

These accounts effectively acted as crypto wallets, never touching the firm’s interest-bearing lending service.

A possible extension of the deadline for Celsius’ customers to submit their claims is likely to anger many of the firm’s customers after it was recently reported that lawyers and other advisers in the Celsius case had also been seeking nearly $53 million in legal fees for their services in just four months since the firm filed for bankruptcy.

One such law firm, Kirkland & Ellis, billed almost $20 million for its services from July through October, followed by White & Case LLP, which represents the unsecured creditors’ committee, with a $10.2 million bill.

Other notable advisors in the Celsius case include Alvarez & Marsal North America LLC and M3 Advisory Partners LLP, who sought $6.5 million and $4 million for their services, respectively.