Are You a Celsius Customer? Here’s What You Need To Do | by Thomas Guenter | Jul, 2022

Celsius, the crypto lending app with 1.7 million users in 100+ countries, has stopped withdrawals and filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

If you hold crypto on the Celsius app you will likely lose all or part of your funds. This is what you need to do:

• Today: nothing (consider to consult your legal and financial advisors and/or sell your claim on the claims market)
• September 12: submit proof of claim if you are not listed in the “Schedules”

Today

At this time, the Court has not established the official Proof of Claim submission procedures for this case. Once these procedures are approved, there will be a tailored form that customers can use to identify the various coins in their account.

The current Proof of Claim form available on Stretto is the official, generic form that creditors (a person or company to whom money is owed) may use to submit a prepetition claim or demonstrate amounts owing against Celsius on or before July 13, 2022.

Possibly before September 12, customers will be notified when the new form is ready with specific instructions on how to file a claim and the related deadline. Claims are not paid based on the order that they are filed.

Stretto is the bankruptcy-administration platform that is used for this case. They answer questions via celsiusinquiries@stretto.com.

September 12

Creditors are encouraged to submit a Proof of Claim if they are not listed in the Debtor’s Schedules of Assets and Liabilities (the “Schedules”). These will be filed with the Court and appear on the case website on September 12, 2022.

The Schedules will detail all of the amounts that the Debtors acknowledge owing to creditors as of the time of their bankruptcy filing.

If you have an unpaid claim that is not listed in the Debtors’ Schedules and do not file a Proof of Claim by the Bar Date (to be determined), you may not be entitled to receive any recovery on your claim (if such claim is allowed and once a Chapter 11 Plan is confirmed).