Administrative expenses from the bankruptcy proceedings have already topped $53 million, and continued delays are chipping away at Celsius’ estate.
Bankrupt crypto lender Celsius Network plans to submit a proposal that would extend the deadline for users to submit claims by another month.
The crypto community is growing impatient and has noticed that legal fees from Celsius keep piling up and eating into the lender’s assets.
In a tweet dated December 29, Celsius said it intends to extend the current advertising deadline from January 3 to early February.
The bankruptcy court will hear the petition on January 10, and Celsius says the January 3 deadline will be extended at least until then.
Celsius is preparing to file a motion later this week seeking an extension of the filing deadline, which is the deadline to file the lawsuit, from January 3, 2023, to early February.
— Celsius (@CelsiusNetwork) December 29, 2022
The compensation process allows creditors who believe they are entitled to payment to file claims during bankruptcy proceedings. By December 29, Celsius’ creditors had filed more than 17,200 claims. However,
Celsius’ creditors appear to be angry as Celsius’ management fees continue to pile up since it filed for bankruptcy in July. A December 27 Financial Times report noted that fees for bankers, lawyers, and other advisers in the bankruptcy case had already reached $53 million.
For example, on December 15, the law firm representing Celsius, Kirkland, and Ellis was charged more than $9 million for work done in September and October. According to Celsius, only $9 million has been allocated to refund customers so far. This money belongs to users who once held money in the savings program and represents a minority of the $72 billion in Celsius user deposits.
Some members of the crypto community are unimpressed with the recent delay in the trial, claiming it is yet another “delayed tactic”. For example, one user remarked: “Stop wasting time, stop going ahead, go ahead with the procedure and give me my money back!!!!” while another simply said, “Don’t waste my time and money.”
Lawyers get paid millions but I wonder what we little people get?
– Chris (@browncoat1of1) on December 29, 2022
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