Celsius, a bankrupt cryptocurrency lender, sets the bar date for January 3rd, 2023, with court approval.

Kutl Ahmedia

Celsius Network, a defunct cryptocurrency lender, declared that the bankruptcy court had accepted its request to "set the bar date" for consumers to submit claims. Customers now have until January 3, 2023 to submit their proof of claims, according to the notice. Additionally, Celsius stated that its claims agent, Stretto, will notify customers via their provided contact information and the Celsius app of the bar date and the next steps in the proof of claim process.

Customers of the bankrupt lender who fall into one of the categories listed in the legal document, such as if any claims have already been paid by what is left of the company and a similar form has already been filed with the clerk of the bankruptcy court in New York, are exempt from submitting proof of claim.

As a reminder, customers who accept Celsius' scheduling of their claims as filed in the Schedules of Assets and Liabilities do not need to submit a proof of claim, and at this time, they are not required to take any further action with regard to such claim, according to a tweet from Celsius.

The next court hearing, set for December 5, will center on issues pertaining to Celsius' Custody and Withhold services, which an examiner found to have operational and control flaws.

According to a report from Bloomberg, Celsius examiner Shoba Pillay discovered that the company's Custody service was run "without adequate accounting and operational controls or technical infrastructure." Since Celsius did not account for the 24 percent shortfall (roughly $50 million or Rs. 406 crore) in custody wallets on June 24, the shortfall was a violation of the law.

According to Pillay, Celsius made no attempt to isolate or specifically identify any crypto assets connected to the users' accounts for the Withhold service. Customers "now face uncertainty regarding which assets, if any, were theirs as of the bankruptcy filing" as a result, Pillay continued.


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