The defunct cryptocurrency lender Celsius Network plans to submit a motion that would give users one more month to lodge their claims.
The cryptocurrency community has begun to lose patience as they notice how Celsius’ legal costs have continued to rise and are depleting the lender’s estate.
Celsius declared in a tweet on December 29 that it would look to extend the existing claim deadline from January 3 to early February. The deadline of January 3 will be postponed until at least the bankruptcy court’s hearing on the motion on January 10.
During bankruptcy proceedings, creditors who feel they are entitled to payment may submit claims via the claims process. As of December 29, creditors of Celsius have filed approximately 17,200 claims.
Although Celsius’ administrative costs have continued to mount since its initial bankruptcy filing in July, creditors seem restless. The most recent postponement in the proceedings has not been well received by some in the crypto world, who claim it is just another “delay tactic.” The fees charged by bankers, attorneys, and other advisers in the bankruptcy case had already surpassed $53 million, according to a Financial Times report from December 27.
Judge Martin Glenn designated fellow judge Christopher Sontchi to be a “fee examiner” on October 20 at the request of Celsius, the U.S. trustee, and the unsecured creditors’ committee. He must haggle over and approve the fees decided upon by the attorneys and other experts involved in the case.
Additionally, the fee examiner is being reimbursed from Celsius’ estate; the most recent fee statement was issued on December 21 and asks for little under $20,000 for work completed in November.
