Celsius Updates Contract Claim Policy, Sets New Deadline for Proof of Claims

According to David Adler, the Bankruptcy Partner at McCarter & English, LLP, Celsius is revamping its schedules after the recent Customer Contract Decision. This move allows creditors to file their proof of claim during the specified period. Remember to mark your calendars as the new deadline to submit your claim. The Bar Date has been announced for April 28, 2023.

Celsius’s contract claim update

According to the notification, the court has issued a Bar Date Order, establishing deadlines for filing proofs of claim, authorizing processes and notices, and providing appropriate remedies. Another court ruling has extended the Bar Dates. According to the Debtors’ Schedules and Statements, only Celsius Network LLC is responsible for contract claims connected to the Earn, Custody, and Withhold programs. For contract disputes relating to the Borrow program, only Celsius Lending LLC is accountable.

Furthermore, it should be noted that the Debtors have not made any provision for claims relating to fraud or other non-contractual issues. If an account holder wishes to make such a claim, they must file a proof of claim on or before April 28, 2023. As for the updated global notes about the Schedules and Statements, as well as other documents related to the case, they are available online at no cost.

During a recent event, Simon Dixon, the CEO and founder of Bank To The Future showed his appreciation for Adler’s selfless act towards the Celsius creditors. In a tweet, Dixon emphasized that Adler deserves to be recognized for his voluntary services while fulfilling his duties as a legal advisor to his clients. This acknowledgment highlights Adler’s dedication to helping others and demonstrates the importance of individuals who go above and beyond to assist those in need.

Court ruling favors celsius customers with custody accounts

Previously, a legal decision permitted clients of Celsius who hold Custody accounts to obtain a refund of up to 72.5% of their crypto deposits. However, individuals who transferred their cryptocurrency to Celsius through Earn accounts will not be entitled to such reimbursement. According to the company’s bankruptcy petition, Celsius stated that it had $4.3B in assets and $5.5B in liabilities.

In Judge Glenn’s decision, Celsius’ liabilities were significantly reduced to approximately $1.3B, giving some relief to the company. As for the remaining Earn customers, they are faced with a tough choice between either accepting a sizable refund of nearly 75% of their investment or continuing with additional legal action.

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