Disputes or evidence – Customers of Celsius can they hope to recover some of their assets soon? The bankruptcy procedure of the crypto lending platform is taking a new step.
Celsius Bankruptcy: From Initial State to Deadline for Claims
In series of tweets from November 20, Celsius announced that the bankruptcy court has approved its motion to fix a deadlinefor all customers who need to “file a complaint”.
According to an explainer video the company shared two months ago, Celsius had to file in court, a table of assets and liabilitieswhich includes the amount of debts the company believes it owes to its customers and other creditors, as of July 13, when it filed for Chapter 11 protection under the U.S. bankruptcies.
This table should thus contain information on the balances of the accounts of all its customers, at the time when the company officially declared bankruptcy. However, Celsius points out that deviations may exist between reported balances and those displayed on users’ accounts for “various reasons”, without providing further explanation.
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Customer complaints: operational process and other useful information
After this statement was filed with the court, Celsius filed a motion, which sets out different terms for sending customer complaints to the company or to Stretto. The latter is the agent in charge of claims and notifications of the crypto lending platform, as part of the management of its bankruptcy.
After the court approved the motion filed by Celsius, the deadline for filing customer claims has been set next January 3. Stretto should then send the instructions for this procedure to the email address of each customer account. An electronic form for making these complaints should be available.
Customers who agree with their account balance, listed in the table Celsius filed with the court, do not need to complete this claim form or take any other action.
Other customers who want either dispute the balances mentionedthat is provide proof of their claimshave until January 3 to complete the form.
With current advances, could the bankruptcy court make a decision that could mitigate the ordeal of customers, failing to be able to end it, in 2023? Or will the creditors of the crypto lending platform have to wait a long time before they can recover some or all of their assets?
The events of the past week and the bankruptcy of Celsius are there to remind us that we must remain cautious in this still very young ecosystem. Get into the habit of healthy distrust. To buy your cryptocurrencies, sign up now on Bitget and start getting acquainted with the exciting world of blockchain technology (commercial link).