Celsius Network explains how users can claim their money back
There is currently no deadline for the claims submission.
Bankrupt crypto lender Celsius Network has announced it expects to soon begin the claims process and shared a video with an overview of this phase of the restructuring process.
The firm also published a FAQ (frequently asked questions) about the claims process which covers the schedules of assets and liabilities, possible issues with the amount listed not being the same as the account balance, and how to file a claim.
As explained below, users only need to submit proof of claim if they disagree with the records filed by Celsius or if a user’s claim was marked as “contingent,” “unliquidated,” or “disputed.”
For those who have already filed a claim using the standard form on “Stretto”, they are welcome to amend it on the updated form in order to expedite the reconciliation of their claim with Celsius’ records.
There is currently no deadline for the claims submission. Once it is set, after that date, Celsius will reconcile all filed claims against its records and then it will distribute funds to the allowed claims, according to the Chapter 11 Plan approved by the Court.
Celsius claims process FAQ below
1. What are the Schedules of Assets and Liabilities?
As part of our Chapter 11 proceedings, Celsius files documents with the Court listing, among other things, all customer account balances as of July 13, 2022, when the restructuring process began as well as customer transactions in the 90 days preceding the Chapter 11 filing. Customers can access the Schedules on the Stretto website at https://cases.stretto.com/celsius/court-docket/schedule-statements/.
2. Why is the amount listed in the Schedules different from my account balance in the app?
There are several possible reasons why the amount listed on the Schedules may be different from the account balance displayed in the app, including post-filing deposits, pending transactions, and reward-related changes.
Note regarding a potential discrepancy between Celsius’ filed Schedules of Assets and Liabilities and customer reward balances: Certain Celsius account holders may have been eligible for additional rewards for the period of July 8, 2002 to July 13, 2022, which are reflected in the Schedules but not currently reflected in the Celsius app. Affected accounts are currently being updated and the app will soon display the revised balance.
3. Do I have to file a claim?
If you agree with Celsius’ records as filed, you do not need to complete and submit a proof of claim form; no further action is required. If you disagree with the information, or if your claim was marked as “contingent,” “unliquidated,” or “disputed,” you would need to submit proof of claim.
Please note the current proof of claim form available through the Stretto website is expected to be revised to make it easier for customers to submit information related to your crypto balance. Customers will be sent the appropriate form with comprehensive instructions once the Judge approves the procedures for our claims process.
4. When is the deadline to file a claim?
The Court has not yet set the “Bar Date” or deadline to file a claim. Celsius will file a motion requesting that the Court set a Bar Date and approve procedures for filing claims in the near future.
Once the procedures are approved, customers will receive detailed instructions on how to file a claim. Stretto will send this communication, which will clearly state any deadlines, to the email address associated with your Celsius account. At that time, a claim form specific to crypto assets, mentioned above, will be available. It will be designed to simplify how our customers file claims.
5. I already filed a claim using the standard form on Stretto’s website. Do I have to resubmit on the new form?
Although you are not required to do so, amending your original claim on the updated form will help expedite the reconciliation of your claim with Celsius’ records.
6. How will I know my proof of claim has been received?
Upon submitting your form online, you will receive a confirmation email with a reference number for your proof of claim.
If you choose to mail your claim, you will need to submit two copies with a self-addressed and stamped return envelope to receive confirmation of receipt.
7. How do I know if Celsius has the right contact information for me?
If you would like to confirm that the account details and contact information are updated and current, please contact Celsius Customer Care through the webform on our site.
8. What happens after the Bar Date?
After the Bar Date, Celsius will reconcile all filed claims against our records. Once all claims have been reconciled, allowed claims will receive a distribution as provided for in the Chapter 11 Plan that will be approved by the Court.
Celsius wants to start a crypto custody business
Celsius has recently asked the court to sell its stablecoins in order to resume operations and start a crypto custody business. The bankrupt crypto lender currently owns eleven different forms of stablecoin totaling approximately $23 million.
Interestingly, Celsius already owns a crypto custodian subsidiary, GK8, but it is attempting to sell the firm as part of its bankruptcy process.
Celsius acquired GK8 for $115 million in 2021 and has sought initial bids for its digital asset custody subsidiary GK8 Ltd. by August 15, according to court papers, which noted that potential bidders include “strategic parties, other companies in the cryptocurrency ecosystem, scaled fintech companies, and traditional financial institutions”.
The ‘crypto winter’ has taken its toll on many firms operating within the digital asset industry. At the time of bankruptcy, Celsius had more than 1.7 million registered users and approximately 300,000 active users with account balances greater than $100.