- Celsius has modified its schedules to allow creditors to submit proof of claim by April 28, 2023.
- Only Celsius Network LLC is liable for contract claims related to Earn, Custody, and Withhold programs.
- Celsius customers with Custody accounts can receive up to 72.5% of their deposited crypto back.
Bankruptcy Partner at McCarter & English, LLP, David Adler reported that Celsius is making changes to its schedules, following the Customer Contract Decision. This modification enables creditors to submit proof of claim within the designated time frame. The new deadline, also known as the Bar Date, has been set for April 28, 2023.
#CelsiusBankruptcy #CelsiusNetwork Here we go again …. Celsius is amending it’s schedules, consistent with the Customer Contract Decision. That opens the window and allows creditors to file a timely proof of claim in response. New Bar https://t.co/vyx2ZzXnci… pic.twitter.com/MTUGHj0kdH— David Adler (@DavidJAdler1991) March 25, 2023
According to the notice, the court has issued a Bar Date Order setting deadlines for submitting proofs of claim, approving procedures and notices, and granting related relief. The Bar Dates have been extended by another court order, and the Debtors have amended their Schedules and Statements to reflect that only Celsius Network LLC is liable for contract claims related to the Earn, Custody, and Withhold programs, and only Celsius Lending LLC is liable for contract claims related to the Borrow program.
Additionally, the Debtors have scheduled no claims for fraud or other non-contractual claims, and account holders who wish to assert such claims must file a proof of claim by April 28, 2023. The amended global notes to the Schedules and Statements and other case documents can be obtained online for free.
Meanwhile, Bank To The Future CEO and founder, Simon Dixon retweeted Adler’s tweet stating that Adler deserves recognition for his voluntary services to Celsius creditors while also representing his clients in his usual capacity as their legal advisor.
Earlier, a court ruling allowed Celsius customers with Custody accounts to receive up to 72.5% of their deposited crypto back, while Earn account holders who signed over their crypto to Celsius will not benefit. Celsius claimed to have $4.3 billion in assets with $5.5 billion in liabilities when filing for bankruptcy.
Essentially, Judge Glenn’s ruling cut Celsius’ liabilities down to about $1.3 billion. The remaining Earn customers have a choice between receiving almost three-quarters of their money back or pursuing further litigation.
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