Breaking!! Here’s How Celsius Customers Can Submit A Proof Of Claim

Celsius’s Bankruptcy Crisis

Celsius was a fintech platform that provides borrowing, digital and fiat payments, and interest-bearing savings accounts. 

In June 2022, it filed for bankruptcy. According to Bloomberg, celsius network celsius network - Lending & BorrowingCryptocurrency investment co-founder and CEO  Alex Mashinsky Alex Mashinsky   Alex Mashinsky is a technology entrepreneur of Israeli-American descent and a prominent person in the cryptocurrency space. He is a co-founder and ex-CEO of Celsius Network, founded in 2017. It is a lending platform built on blockchain technology.   Having a background in leading VOIP technology, he moved into cryptocurrency to offer decentralized financial solutions.   Quick Facts   Full name Alexander Mashinsky Birth 06-10-1965, Ukrainian Soviet Socialist Republic Nationality Israeli-American  Education Electrical Engineering from Tel Aviv University (dropped out) Wife/Partner Krissy Mashinsky Net worth Estimated in millions   Under his guidance, Celsius sought to make banking accessible to all by providing interest-earning crypto accounts and loans. Nevertheless, the platform encountered legal and financial issues, resulting in its insolvency in 2022.   Alex Mashinsky - Career Timeline   1996 – Co-founded Arbinet, revolutionizing VOIP technology. 2017 – Founded Celsius Network, a crypto lending and borrowing platform. 2018 – Launched Celsius token (CEL) to incentivize users. 2021 – Celsius reached $20B in assets under management. 2022 – Celsius filed for bankruptcy amid liquidity issues. 2023 – Faced legal challenges related to Celsius’s collapse.   Despite the controversies, Mashinsky continues to be a strong proponent of blockchain innovation and decentralization, often providing insights on financial liberty, cryptocurrency lending, and the future of decentralized finance (DeFi).   Useful Links To Connect With Alex Mashinsky   Platform Link X (formerly Twitter) www.twitter.com/mashinsky LinkedIn profile linkedin.com/in/mashinsky Celsius Network www.celsius.network Personal Website www.alexmashinsky.com     EntrepreneurChief Executive OfficerBoard Member said that the platform’s digital asset count increased more quickly than Celsius was prepared to use.

As of July 13, 2022, the platform had roughly $4.31 billion in assets and $5.5 billion in liabilities, according to court records. Following the bankruptcy filing, there were more customer trips, which caused the withdrawals to stop on June 13, 2022.

US Court’s Deadline

The bar date of January 3, 2023, has been approved for Celsius’s clients; till this date, they must submit a claim for the entities that were held until July 13th, i.e., before the firm became insolvent. 

December 5th is the next scheduled day for court proceedings, during which additional arguments about the custody and withholding accounts will be considered. Similar to every other cryptocurrency platform in the present market, the Celsius network makes the same promise: “data and asset security remain a top concern for all.”

Celsius’s Plan For Reorganization

In motions, Celsius asked the court to extend the time it had to present a reorganization plan.

Celsius was given 120 days of exclusivity to present a bankruptcy plan after filing for Chapter 11 bankruptcy in July.

According to court documents, the lender utilized the four months to “lay the foundation for additional conversations” aimed at offering relief to its consumers.

Celsius Customer Claims: FAQs

1. How do Assets and Liabilities Schedules work?

Celsius files records with the Court as part of our Chapter 11 proceedings that include, among other things, a list of all customer balance sheets as of July 13, 2022, the date the reform started, as well as a list of customer transactions in the 90 days prior to the Chapter 11 filing. Customers can obtain the Schedules at https://cases.stretto.com/celsius/court-docket/schedule-statements/.

2. Do I need to submit a claim?

There is no need to fill up and submit a proof of claim form if you accept Celsius’ records as filed; no further action is necessary. You would need to provide evidence of claim if you disagree with the data or if your claim was flagged as “contingent,” “unliquidated,” or “disputed.”

Please be aware that the Stretto website’s current proof of claim form will likely be updated to make it simpler for users to submit data about their cryptocurrency balance. 

3. When is the last day to submit a claim?

The “Bar Date” or deadline to submit a claim has not yet been set by the Court. In the near future, Celsius will submit a motion asking the Court to adopt claim-filing procedures and set a bar date.

Customers will get comprehensive instructions on how to submit a claim as soon as the processes are approved. Stretto will send this notice to the email address connected to your Celsius account, and it will make any deadlines crystal apparent. 

4. What will my proof of claim look like once it has been received?

After submitting your form online, you will get a confirmation email and a reference number for your proof of claim.

If you decide to mail your claim, you must send two copies along with a self-addressed, postage-paid envelope for receipt confirmation.

5. Once the bar date has passed, what happens?

Celsius will compare all submitted claims to the records after the Bar Date. Eligible claims will be paid out in accordance with the Chapter 11 Plan after all claims have been compared and authorized by the Court.

Bottom line

Due to the company’s incompetence, the clients are currently unsure whether their assets should be included in the bankruptcy petition.