Celsius Network Seeks to Extend Deadline for Claims, Fees Reach $53M

Bullet Points:
-Celsius Network is planning to file a motion that would extend the deadline for users to submit their claims by another month.
-Administrative expenses from the bankruptcy proceedings have already topped $53 million, and continued delays are chipping away at Celsius’ estate.
-A Dec. 15 fee statement from one of the law firms representing Celsius, Kirkland & Ellis, requested a fee of over $9 million for their services.

Celsius Network, a crypto lender, is looking to extend the deadline for users to submit their claims by another month. This motion would be put before the bankruptcy court on Jan. 10, and the original Jan. 3 deadline would be extended until then. This move is being met with some impatience from the crypto community, as lawyer fees have been steadily chipping away at Celsius’ estate.

Since filing for bankruptcy in July, the fees charged by bankers, lawyers and other advisers have already reached a staggering $53 million. A Dec. 15 fee statement from one of the law firms representing Celsius, Kirkland & Ellis, requested a fee of over $9 million for their services. This could potentially come at the expense of Celsius’ creditors, who have already submitted over 17,200 claims.

The claims process allows creditors who believe they have a right to payment to file claims during bankruptcy proceedings. Creditors are hoping that the extended deadline will allow them to make sure that their claims are filed in time and that their payments will not be affected by the fees being charged to Celsius.

Celsius Network has been a popular crypto lender, offering users a way to earn interest on digital currencies. As of Dec. 29, the company was seeking to extend the deadline for claims in order to make sure that their creditors can get their money back. It is unclear how this bankruptcy case will play out, but it is sure to be an interesting situation to watch as the fees, deadlines, and claims continue to be debated.