Crypto Lender Pushes User Claims Deadline: Lawyer Fees Mount to $53M

Celsius, the bankrupt crypto lending platform, has asked for an extension to the deadline for users to submit their claims in the ongoing bankruptcy proceedings. The deadline is currently set for January 3, 2023, but Celsius is asking for it to be moved to early February.

The company says that the extension is necessary to give account holders more time to file any proof of claim. The bankruptcy court is scheduled to have a hearing on January 10, 2023, to consider the motion.

The extension has angered lawyers and other advisers that owe Celsius nearly $53 million in legal fees for their services in just four months of court proceedings. Some have alleged that the extension is yet another “delay tactic” by Celsius.

Celsius is one of several high-profile crypto insolvencies in 2022. The company made headlines last month after halting all customer non-fiat withdrawals citing “extreme market conditions.” The troubled lender claimed more than 100,000 creditors in its petition and had between $1 billion and $10 billion in liabilities.

The extension of the deadline for users to submit their claims is just the latest development in the ongoing bankruptcy case of Celsius. It remains to be seen how the court will rule on the motion, and what impact it will have on the overall case.

In the meantime, account holders who are owed money by Celsius should continue to monitor the case closely and file their claims as soon as possible.