The insolvent cryptocurrency lender Celsius Network intends to present a petition that would give users one more month to lodge their claims.
The cryptocurrency community has begun to lose patience as they observe how Celsius’ legal costs have continued to mount and are depleting the lender’s inheritance. Celsius declared in a tweet on December 29 that it would look to extend the existing claim deadline from January 3 to early February.
The deadline of January 3 will be postponed until at least the bankruptcy court’s hearing on the motion on January 10 (Calculus).
During bankruptcy proceedings, creditors who feel they are entitled to payment may submit claims via the claims process. As of December 29th, creditors of the firm have filed approximately 17,200 claims.
Although the firm’s administrative costs have continued to rise since its initial bankruptcy filing in July, creditors seem impatient. The fees charged by bankers, attorneys, and other advisers in the bankruptcy case had already surpassed $53 million, according to a Financial Times report from December 27.
As an illustration, a fee statement dated December 15 from one of the law firms representing the firm, Kirkland & Ellis, asked for payment of more than $9 million for services rendered in September and October.
Celsius Sets Aside $44M For Client Refunds
Comparatively, Celsius has only set aside $44 million thus far for client refunds. This money, which makes up a small portion of the $4.72 billion in customer deposits held by the firm, belongs to users who have only ever kept money in the Custody Program.
The most recent delay in the proceedings has not been well received by some in the crypto world, who claim it is just another “delay tactic.” One user said, “Stop wasting time stop extending, just go on with proceedings and give me my money back!!!!” while another commented, “Stop.” Another simply stated,
“Stop wasting time and my money.”
Simon Dixon, the founder of the global investment platform BnkToTheFuture and a vocal participant in the Celsius bankruptcy proceedings, noted in a tweet on December 23 that by the time users are able to get their money back from Celsius, they should only anticipate receiving about hal of what they invested.
Judge Martin Glenn designated fellow judge Christopher Sontchi to be a “fee examiner” on October 20 at the request of Celsius, the U.S. trustee, and the unsecured creditors’ committee. He must haggle over and approve the fees decided upon by the attorneys and other experts involved in the case.
Additionally, the fee examiner is being compensated from Celsius’ estate; the most recent fee statement was issued on December 21 and asks for little under $20,000 for work completed in November.