According to reports, the crypto lending firm, Celsius Network, is expected to incur $144M in legal and advisory fees during its bankruptcy case. This news has sparked reactions in the crypto community.
Crypto Community Tackle Celsius For High Legal And Advisory Fees
Cam Crews, a software developer, recently posted a spreadsheet on Twitter that compiled the reported and projected fees that the crypto lender, currently in bankruptcy, must pay. Per the data, the crypto lender has filed and paid nearly $102 million to date.
Crews also noted that some months were absent and estimated that around $42 million in fees remain unpaid and unfiled. Meanwhile, several members of the crypto community responded to the tweet, with some drawing comparisons between Celsius and the current problem facing Silicon Valley Bank (SVB).
They went as far as suggesting that creditors should form their law firms. A Twitter user claimed that Alex Mashinsky, Celsius’s founder, deceived them, and the legal system ruled against them.
The developer also speculated that wealthy VC depositors at now-bankrupt SVB had their funds protected despite being uninsured. Additionally, another community member opined that lawyers should be required to provide “proof of work.”
Due to the exorbitant fees paid to lawyers, a user sarcastically proposed that creditors form their legal firm to recover their losses. The individual suggested that they charge $2,000 till they receive their due compensation.
Celsius Has Some Funds In Signature Bank
Community members shared similar views last December when Celsius announced its intention to extend the claims deadline. Some suspected it was a stalling tactic, while others criticized the attorney fees and contrasted them with what ordinary people would receive.
At the time, one user expressed frustration, saying, “Stop wasting time and extending deadlines. Just proceed with the case and return my money.” Another user was more concise, stating, “Stop wasting my time and money.”
Last week, The Celsius Official Committee of Unsecured Creditors, which advocates for the rights of account holders at the insolvent crypto lender Celsius, stated that the lender had some funds at Signature Bank. However, the committee did not reveal the sum involved.
Instead, the body reassured that “all depositors will be fully compensated.”