Crypto Lender Celsius Selects Fahrenheit’s Bid for Bankruptcy Exit

Crypto Lender Celsius Selects Fahrenheit’s Bid for Bankruptcy Exit

Network, the digital asset lender that filed for bankruptcy
protection in July
last year, has selected Fahrenheit’s bid to restart the business under a new
name, NewCo. Fahrenheit is a group of investors that includes Bitcoin
mining company, US Bitcoin Corp.; crypto investment firm, Arrington Capital; and technology
consulting firm, Proof Group. Steven Kokinos, a former Algorand CEO, and Ravi
Kaza, an angel investor, are also part of the group.

Celsius announced the development on Thursday, noting that it also secured a backup bid with Blockchain
Recovery Investment Consortium (BRIC), which is a group of investors that fund
blockchain firms battered by the crypto market downturn. The agreement includes
provisions for the investors to fund a public mining firm potentially to be
managed by crypto miner GlobalXDigital.

to Fund Celsius Reboot

in a statement noted that Fahrenheit’s winning bid was selected after a
court-approved auction process and in partnership with the bankruptcy company’s
unsecured creditors. The bid proposes to provide the capital, management team
and technology needed to successfully establish and run NewCo, which will be owned
by Celsius creditors.

The bid selection comes after Celsius folded up in June 2022 after initially suspending crypto withdrawals
on its platform, citing market volatility. The digital asset lender became insolvent following the Terra-Luna collapse that sent shockwaves across the global crypto
industry last year.

In the
aftermath of its fall, Celsius has been facing several
investigations in the
United States and Alex Mashinksy, its Co-Founder, was recently charged with fraud. However, the latest development shows the failed digital
lending business is making progress in its efforts to reorganize under a new entity.

to Get ‘Hundreds of Millions of Dollars’

Announcing the winning bid, Celsius noted that Fahrenheit’s bid will be executed in
accordance with its reorganization plans. According to the plan, NewCo for the benefit of account holders will manage
Celsius’ illiquid assets, including its institutional loan portfolio, mining
business and alternative investments.

The plan
also provides for the distribution of ‘hundreds of millions of dollars of
additional liquid cryptocurrency’ to Celsius’ customers. Compared to what Celsius called ‘the stalking horse bid’ put forward at the start of the auction process, Fahrenheit’s bid
cuts down proposed management fees by hundreds of
millions of dollars.

winning bid also provides attractive offers for Celsius to immediately energize
its mining rigs that are currently inactive and for NewCo to build its mining
business over time,” Celsius said, noting that NewCo will be managed by a new
Board of Directors majorly appointed by its creditors.

the crumbled digital lender pointed out that 100% of the new equity in NewCo will be owned by its account
holders, again in accordance with its reorganization plan.

“In the
coming weeks, Celsius intends to negotiate and publicly file a plan sponsor
agreement with Fahrenheit, a backup plan sponsor agreement with the BRIC, a
revised chapter 11 plan, and a disclosure statement, all of which remain
subject to bankruptcy court approval,” the lender
explained. in Hong Kong; CFI’s new office; read today’s news nuggets.

This article was written by Solomon Oladipupo at

About Post Author


airmax internet | redakcja treści i tekstów. profesjonalna korekta książek. jeśli jesteś selfpublisherem lub prowadzisz wydawnictwo i szukasz korektorki, pisz śmiało | Serwis telefonów Kraków Cennik | szukasz produktów marki fiskars, biovita, czy prosperplast? znajdziesz u nas także agrotkaniny, siatki na krety i wiele więcej | szukasz szkoły podyplomowej o kierunkach edukacji osób z niepełnosprawnościami? prowadzimy szkołę online, a także lekcje katowice, wrocław opole nysa Katalog firm Baza przychodni weterynaryjnych Katalog stron PEKSI WP web site Katalog stron Osuszanie Wodzisław Śląski Internetowy sklep zoologiczny