Celsius Network, a cryptocurrency lender, announced that it is getting ready to submit a motion asking for a one-month extension of the deadline for consumers to submit their claims. The motion is set to be heard by the bankruptcy court on January 10 according to Celsius’ most recent report. Thereafter at least, the deadline will be extended. Following the collapse of the Terra ecosystem tokens, Celsius filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York in July.
Weeks before Celsius Network’s customer accounts were frozen, the company’s embattled founder and former CEO, Alex Mashinsky, took $10 million out of the now-bankrupt cryptocurrency lender.
Celsius, a cryptocurrency startup, filed for bankruptcy in New York and was given until the middle of February to submit its reorganization plan. The company’s balance sheet showed liabilities totaling $2.8 billion, according to the court document submitted by consulting firm Kirkland & Ellis. A bankruptcy judge mandated that Celsius repay $44 million in payments to clients who weren’t part of its yield-bearing accounts. The company’s attorneys and consultants have submitted thorough fee proposals totaling $53 million to the New York federal bankruptcy court.