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US Court, Celsius Sends lmportant Message to Investors

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Following the ongoing legal proceeding of Celsius bankruptcy, the United States regulator has released a memo informing all affected Celsius victims to initiate a proof claim against the company before the deadline.

In the same vein, Celsius corroborated the report of the U.S. Bankruptcy Court in the southern district of New York State with detailed explanations on how affected customers could file a claim before the January 3 deadline expires.

The defunct crypto lender also created a video with a view to explaining the processes involved in the claim. The firm seized the opportunity to assure its customers that data and asset security will be prioritized at Celsius.

Recall that the crypto lender Celsius filed for Chapter 11 bankruptcy following a cash crunch. Until its collapse, the firm had over 100,000 creditors and held approximately $4.3 billion of assets.

Meanwhile, Celsius has been under legal scrutiny following its collapse. The court ruling on Nov. 1 ordered an investigation of the firm over the allegation that the crypto lender might have been a Ponzi Scheme. 

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While this is yet to be ascertained, the court has imposed an order prohibiting the reopening of the platform for withdrawals or stablecoin transactions. The next sitting on the case has been fixed for Dec. 5.

A Season of Bankruptcies

There is no mincing word that the ongoing bear market has accelerated the bankruptcy spree among top crypto and blockchain firms. Asides Celsius, FTX crypto exchange is the latest firm to file for Chapter 11 bankruptcy in the U.S.

In the same vein, Voyager Digital Ltd., a platform for buying and staking cryptocurrency, filed for Chapter 11 bankruptcy protection in order to carry out restructuring that will benefit stakeholders.

The decision was justified by Voyager as the viable option to protect assets on the platform as well as provide value for customers. Meanwhile, FTX maintained that it will commence restructuring plans and urged customers to be patience.