Investors of the bankrupt Celsius can apply to the court for compensation
2022.11.21 05:38
Investors of the bankrupt Celsius can apply to the court for compensation
Budrigannews.com – The bankruptcy proceedings of Selsius are continuing, as the U.S. Bankruptcy Court in the Southern District of New York has approved a new deadline to file applications.
According to official documents, there is a minimum deadline for filing any claims against the former borrower of a digital asset. Any individual or legal entity covered by individuals, partners, corporations, joint ventures and trusts wishing to do so must submit proof of claim by January 03, 2022 at 5:00 pm Eastern time.
Klesius himself posted a message on Twitter, informing his former users about the court’s past approval of deadlines and step-by-step information about filing a lawsuit.
We created this video to help explain the claims process: https://t.co/jXmL1VQNxg
— Celsius (@CelsiusNetwork) November 20, 2022
The decision was made shortly after the nomination of an independent expert in the Selsius case alleging the existence of “insufficient” accounting and operational control in the management of client funds.
Klesius’ activities were closely monitored by regulatory authorities. By a court decision dated November 01, the judge suspected in the case ordered an investigation into the possibilities of using Cisco as a Ponic scheme, as customers stated that the former crypto-credit company used the assets of a new user in order to cover existing income and simplify the withdrawal of funds.
The courts also opposed the next opening of a platform for the issuance of funds and the promotion of stablecones. The next court hearing in the case is scheduled for December 5 of this year.
Media: Celsius users have discovered personal information disclosed in the arrest case
Actions in the Celsius bankruptcy case occur after the bankruptcy of another large cryptocurrency. The ongoing crisis in FTX liquidity, which turned into a bankruptcy scandal, is another case when former clients, investors who lost funds were at the mercy of regulators.
In the FTX case, it is assumed that more than 1 million creditors are involved in the case. “On November 20, 5 days after summing up the application for “bankruptcy” under Chapter 11, the “Non-existent Exchange” announced the beginning of a strategic review of its assets for sale or reorganization.”
Lawyers who are familiar with such lawsuits believe that the return of funds from FTX may take years and possibly, decades.
It is ironic that back in October last year, the former director general of the Federal Customs Service, Sam Bankman Fried, outlined how he was acting within the framework of the application for the acquisition of the assets of Celsius.
