After the Customer Contract Decision, the bankruptcy partner at McCarter & English, LLP, David Adler, announced that Celsius is adjusting its timetables. Apr. 28, 2023, is the new cutoff, also called the Bar Date.
Because of this amendment, it is now possible for creditors to provide evidence of a claim within the allotted period.
Previously, a court order made it possible for customers of Celsius who had custody accounts to obtain up to 72.5% of their deposited cryptocurrency back. However, Celsius consumers who had Earn accounts and handed over their coins to the company would not benefit from the verdict. When it filed its bankruptcy petition, Celsius said the company had assets worth $4.3b and liabilities totaling $5.5b.
The letter states that the court has issued a Bar Date Order, which sets deadlines for submitting evidence of the claim, approves proceedings and notices and grants appropriate remedies. The Bar Dates have been extended due to the new court order.
The debtors have amended their schedules and statements to reflect that only Celsius Network LLC is liable for contract claims related to the Earn, Custody, and Withhold programs and that only Celsius Lending LLC is liable for contract claims related to the Borrow program. The court has also ordered that the bar dates remain in effect until further notice.
In addition, the Celsius debtors have not scheduled any claims for fraud or other non-contractual claims. Therefore, account holders who desire to pursue such claims must submit proof of claim by Apr. 28, 2023.
The decision made by Judge Glenn reduced Celsius’ obligations to around $1.3b in their entirety. The remaining Earn customers can either have approximately three-quarters of their money refunded to them or continue with the legal action.
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