• Celsius Network has filed a motion to extend the Bar Date before Martin Glenn, Chief United States Bankruptcy Judge.
• Over 17,200 claims have been filed by Celsius creditors as of December 29, 2022, and the company has only committed approximately $44 million.
• Celsius victims are not interested in the restructuring process but only want their money returned.
Celsius Network has recently taken a step towards restructuring its debt to customers and investors by filing a motion to extend the Bar Date before Martin Glenn, Chief United States Bankruptcy Judge. The motion hearing is expected to be conducted remotely using Zoom for Government, with the motion set to be held on January 10, 2023, at 11:00 a.m., prevailing Eastern Time.
Celsius has accumulated hundreds of millions in debt to customers and investors, however, it has only committed to returning approximately $44 million. This has caused a backlog of claims filed by Celsius creditors as of December 29, 2022, with over 17,200 claims being submitted. As a result, the legal counsel serving as restructuring advisor to Celsius – Kirkland & Ellis LLP – has a considerable burden on its hands.
The victims of Celsius are not interested in the restructuring process, however, and are instead determined to get their money returned. For over six months, the Celsius network has been hiding behind legal proceedings and technicalities, rather than providing any substantial relief to the affected users. With the motion hearing set to take place soon, it remains to be seen whether or not customers will be able to get fully compensated, and when.