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US Court Sets Deadline for Celsius Bankruptcy Plaintiffs

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US Court Sets Deadline for Celsius Bankruptcy Plaintiffs

Source: blockchain.news

Celsius’ bankruptcy case remains pending in the United States Bankruptcy Court for the Southern District of the State of New York, which has set a new deadline for filing documents related to the case.

Those intending to register any claims against the former digital asset lender are advised to do so before the deadline that has been set, which is stated in an official document.

Anyone who chooses to do so must provide proof of claim no later than January 3, 2023 at 5:00 PM Eastern Time. This includes individuals, partnerships, companies, joint ventures, and trusts.

Celsius created a Twitter thread to remind its former users of the recent approval of the court deadline along with detailed information on the claims filing process.

The ruling came shortly after the independent examiner investigating the Celsius case made an allegation that the corporation had “insufficient” accounting and operating controls in managing client money.

Celsius shares have been subject to constant surveillance by the authorities.

Clients alleged that the former cryptocurrency lender used new users’ assets to cover existing returns and facilitate withdrawals, resulting in a court ruling issued on Nov. 1 by the judge presiding over the case. The ruling ordered an investigation into the possibility that Celsius was a Ponzi scheme.

The lawsuit is scheduled to proceed in court once more on December 5 of this year, when the next scheduled hearing takes place.

The latest developments in the bankruptcy case involving Celsius come in the wake of the failure of another major cryptocurrency platform.

The current liquidity problem in FTXwhich has become a bankruptcy scandal, is just one more case where the authorities must help former clients and investors who have suffered financial losses.

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