Administrative costs associated with the bankruptcy proceedings have already surpassed $53 million, and further delays are eroding Celsius’ estate.
Celsius Network, a bankrupt cryptocurrency lender, intends to file a motion to extend the deadline for users to submit claims by another month.
The cryptocurrency community has grown impatient, noting that Celsius’ legal fees have continued to mount and are eating away at the lender’s estate.
Celsius announced on Twitter on December 29 that it would seek an extension that would push the current claim deadline from January 3, 2023 to early February 2023.
The bankruptcy court is scheduled to hear the motion on January 10, and Celsius anticipates that the Jan. 3 deadline will be extended until at least that date.
During bankruptcy proceedings, creditors who believe they have a right to payment can file a claim through the claims process. As of December 29, Celsius’ creditors had filed over 17,200 claims.
Celsius’ creditors, on the other hand, appear agitated, as the company’s administrative fees have continued to mount since its initial bankruptcy filing in July. According to a December 27 Financial Times report, the fees charged by bankers, lawyers, and other advisers in the bankruptcy case had already topped $53 million.
For example, a fee statement dated December 15 from one of the law firms representing Celsius, Kirkland & Ellis, requested a fee of more than $9 million for work completed in September and October.
In comparison, Celsius has only set aside $44 million to be returned to customers. This money belongs to users who have only ever used the Custody Program, and it represents a small portion of the $4.72 billion in user deposits held by Celsius.
The latest delay in the proceedings has left some in the crypto community unimpressed, with some accusing it of being yet another “delay tactic.” One user, for example, wrote: “Stop wasting time, stop extending, just go on with proceedings and give me my money back!!!!” Another simply stated: “Stop wasting time and my money.”
