Bankrupt cryptocurrency lender Celsius received court approval to extend deadline for filing restructuring plan

06.12.2022

Cryptocurrency lender Celsius Network has received permission from the U.S. Bankruptcy Court for the Southern District of New York to extend the deadline for filing a restructuring plan.

The new deadline for Celsius to file its plan is Feb. 15, 2023. The company will use the extended time to explore a “plan to create an independent business.”

The court will decide “most likely” next week whether to allow Celsius Network to sell Stablecoins to “provide liquidity for our continued operations.”

Celsius Network applied to sell $18 million of stablecoins in its “Earn” account to reorganize, but account customers argued that the stablecoins in the account belong to them and that the cryptocurrency lender could not liquidate them.

Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York in July. The court filing by consulting firm Kirkland & Ellis listed $2.8 billion in liabilities on Celsius’ balance sheet.