Defunct cryptocurrency lending platform Celsius Network intends to launch an application that, if successful, would buy consumers an extra month to file their claims before the deadline.
Celsius said it will seek to move the date by which claims must be filed from Jan. 3 to early February.
The cryptocurrency community is showing signs of growing impatience after noticing that Celsius’ legal costs continue to pile up and eat away at the lender’s fortune.
According to Celsius, the Jan. 3 deadline will be at least extended until the bankruptcy court hears the motion on Jan. 10, which is scheduled to take place on that day.
During bankruptcy proceedings, creditors who believe they are entitled to payment can make claims through a process known as a claims process.
As of December 29, more than 17,200 claims had been filed by Celsius creditors.
However, Celsius creditors are concerned about the steady accumulation of Celsius’s administrative expenses since the company first filed for bankruptcy in July.
According to a report published Dec. 27 by the Financial Times, the total amount of fees paid to bankers, attorneys and other advisers involved in the bankruptcy process had already exceeded $53 million.
In contrast, Celsius has only committed $44 million to repay customers. This money belongs to clients who previously only held funds under the custody program, and it’s a very small portion of the $4.72 billion in user deposits Celsius now holds.
Some members of the cryptocurrency community feel that the recent delay in proceedings is just another “delaying strategy” and are therefore unhappy with it. It is his responsibility to negotiate and sanction the fees set by the attorneys and other professionals involved in the case.
In addition, the honorary auditor receives payments from the estate of Celsius; The most recent fee schedule was issued December 21 and charged just under $20,000 for services completed in November.
