Celsius Network seeks to extend customer claims deadline

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The cryptocurrency lender intends to file a petition in bankruptcy court that will give users another month to file claims.

During the bankruptcy proceedings of Celsius Networkcreditors who believe they are entitled to compensation have the right to bring claims through the courts. As of Dec. 29, creditors had filed nearly 17,200 claims.

Despite the fact that within the previously established periodNot all Celsius users were able to submit claims; current administrative costs have already exceeded the amount of funds allocated for refunds to customers.

According to the Financial Times, feesbankers, lawyers and other bankruptcy consultants have already exceeded $53 million. By comparison, Celsius has set aside just $44 million in refunds to clients.

This amount represents a small portion of the $4.72 billion in customer deposits held by Celsius and its users.

The cryptocurrency community is extremely negativereacted to the fact that Celsius's legal costs continue to rise and deny most of the company's creditors any chance of recovery. On December 29, the Celsius team promised to move the application deadline from early January to early February.

Earlier, the lending platform Celsius reported
potential buyers that the deadline for submitting applications for participation in the auction has come to an end and auctions for assets are scheduled for January 2023.