- Celsius Network wants more time to work for its reorganization plan.
- The extension will also allow Celsius to address and resolve crucial legal issues.
- However, many users have accused the firm of delaying the process
On Thursday, bankrupt crypto lending firm Celsius Network announced that it has filed a motion to extend the exclusivity period in a bid to get more time to work for its reorganization plan.
Celsius today filed a motion requesting approval to extend the Exclusivity Periods in our cases. This is the period when Celsius has the exclusive right to submit a plan of reorganization.— Celsius (@CelsiusNetwork) November 10, 2022
Talking about the significance of the exclusivity period, Celsius said that it is critical for the firm to be ‘rigorous’ and ‘thorough’ in the interest of all stakeholders.
Note that before concluding the case, the extension of the exclusivity period will also allow Celsius to address and resolve crucial legal doubts and issues. All the parties involved in the case want more time to not let anything undermine the objective of ‘shifting these chapter 11 cases to a value-maximizing resolution’, revealed the bankrupt firm.
The announcement by the firm has left many Twitter users furious, with many accusing the firm of delaying the process and causing more costly turmoil.
Notably, Celsius is already in legal soup with several lawsuits against it even after its continued bankruptcy proceedings. Furthermore, a recent motion has caused dissent among the firm’s shareholders and its customers over who gets preference over the troubled firm’s assets and repayment.
Amid the crypto community calling out Celsius for wasting money on lawyers, the Vermont state regulators have recently alleged that the firm was a Ponzi scheme. The regulators also said their losses fall back to 2020 and did not match their claims that its collapse was a consequence of a crypto crash.
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