The insolvent cryptocurrency lender <a href="https://www.cryptoknowmics.com/news/bankruptcy-judge-demands-return-of-44m-in-crypto-to-celsius-users">Celsius Network</a> intends to present a petition that would give consumers one more month to lodge their complaints. The <a href="https://www.cryptoknowmics.com/news/australia-prepares-to-regulate-cryptocurrency-service-providers-in-2023">cryptocurrency</a> community has begun to lose patience and trust in Celsius as its legal expenses continue rising, which are depleting the lender's inheritance.
<h2>Celsius to Request to Extended Timeframe for Claims as Legal Expenses Mount</h2>
Celsius stated in a tweet on December 29 that it would be requesting an extension, which would push out the current claim date from January 3, 2023, to early February 2023. According to Celsius, the timeframe of January 3 will be postponed at least until the <a href="https://www.cryptoknowmics.com/news/core-scientific-to-file-bankruptcy-and-continue-mining-during-the-process">bankruptcy</a> court's hearing on the application on January 10.

https://twitter.com/CelsiusNetwork/status/1608285816933031936

During bankruptcy filing, creditors who feel they are entitled to payment may submit a claim via the claims procedure. By December 29, creditors of Celsius had submitted approximately 17,200 claims.
<h2>Funds Maintained in Custody Program</h2>
Celsius' creditors, on the other hand, are agitated since the company's administrative expenses have proceeded to mount since its initial bankruptcy filing in July. According to a Financial Times <a href="https://www.ft.com/content/0c9a1df4-2a3e-4aa8-9733-53dd4507d765" target="_blank" rel="nofollow noopener">article</a> from December 27, the fees collected by bankers, attorneys, and other consultants in the bankruptcy proceedings had already surpassed $53 million.

In contrast, Celsius has only set aside $44 million currently to be paid back to clients. A small portion of the $4.72 billion in user deposits maintained by Celsius will go back to consumers who have only ever kept funds in the Custody Program. The most recent postponement in the proceedings has not been well received by some in the cryptocurrency industry, who claim it is just another delay strategy.

Celsius to Expand Timeframe for Claims as Legal Expenses Rise

Celsius intends to present a petition that would give consumers one more month to lodge their complaints as a result of Celsius' ongoing legal expenses.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Celsius to Expand Timeframe for Claims as Legal Expenses Rise

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