The reorganization plan has been put on hold due to a move taken by debtors, which has drawn criticism from the unsecured creditors committee, as well as other parties involved in the bankruptcy case of crypto lending firm Celsius.

The committee, the Retain account holders, the United States Trustee and the Celsius borrowers filed separate objections to a motion on February 8 seeking to extend the exclusivity period for a Chapter 11 restructuring plan dated February 15. February to March 31. The motion was intended to extend the exclusivity period for a Chapter 11 restructuring plan. The exclusivity period now in effect will end on March 31. The purpose of the motion was to request that the expiration date be moved up to March 31 from the current expiration date of February 15. If the suggested extension is approved and carried out as planned, Celsius’s creditors will have the opportunity to provide a plan for the company’s restructuring until June 30.

Due to the effect on Celsius’ clients, Celsius’s Committee of Unsecured Creditors ordered that the bankruptcy case “must move toward resolution.” This decision was made in light of the fact that the issue involves Celsius. They made this comment in light of the fact that many of the customers have been waiting for their payments for several months at this point. Objections were raised by the United States Trustee, as well as by the Celsius borrowers, who asserted that the bankruptcy was “consum[ing] large amounts of professional expenses” without offering any assurance that it would be resolved. These people claimed that the bankruptcy was “consuming” large amounts of money.

The committee has issued a statement stating: “The lives and financial situations of many account holders have been disrupted as a direct result of the past behavior of the Debtors and several of their former directors and officers.” The statement was made after the committee discovered that “the lives and financial situations of many account holders have been turned upside down.” According to this announcement, “the lives and financial circumstances of many account holders have been affected.”