Just a few days ago, the well-known cryptocurrency loan company, Celsius, was one of the first platforms to declare bankruptcy in 2022. Governmental entities have been involved throughout the case’s various turns. In parallel, client problems persist.
Recently, it came to light that Celsius is getting ready to present a motion that will extend the time limit for customers to submit their claims. It stated in its official tweet on the matter that it wanted to delay the bar date from January 3, 2023, to early February.
The crypto loan firm is getting ready to submit a move later this week asking for a postponement of the bar date—the deadline for submitting a claim—from January 3, 2023, to early February.
According to Celsius, its objective is to provide account holders more time to submit any required proof of claim. Additionally, it disclosed,
“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.“
Simply put, the claims process enables creditors to submit a claim during bankruptcy proceedings if they feel they have a right to compensation. Around 17.2k creditors have submitted claims up to this point.
Core Scientific To Cut Off Power To 37,000 Celsius Miners
Celsius now seems to be facing more trouble due to its debt issues. The two now-bankrupt firms concurred that Core Scientific will turn off the electricity to 37,000 mining equipment for which Celsius is still owed money. The news was initially reported by Bloomberg. The accord ends a disagreement that has persisted since last October when Core announced it would look for a ruling in court.
According to court records, Celsius owes Core $7.8 million for power expenses for the miners through November 2022. Due in part to Celsius’ bankruptcy filing and subsequent nonpayment of its debts as well as a lack of cash flow to cover its obligations, Core itself sought bankruptcy protection in December.