Source:
Adobe
Bankrupt
crypto
lender
Celsius
Network
LLC
has
chosen
Fahrenheit
as
its
winning
bid,
which
will
provide
the
capital
and
team
to
operate
a
new
company.
Fahrenheit, which
consists
of
a
group
of
crypto
firms,
was
selected
as
the
winning
bid
on
Thursday
morning,
according
to
a
press
release.
The
Blockchain
Recovery
Investment
Consortium,
or
BRIC,
was
selected
as
the
backup
bid.
“The
Committee
appreciates
the
efforts
of
Celsius
and
all
bidders
for
their
efforts,
which
generated
significant
value
for
Celsius
users,”
the
Celsius
Official
Committee
of
Unsecured
Creditors
tweeted.
Celsius
filed
for
bankruptcy
last
July
and
later
New
York
regulators
sued
Celsius’
former
CEO
Alex
Mashinsky
for
allegedly
lying
to
investors
about
the
firm’s
“dire
financial
condition.”
What’s
the
plan?
Fahrenheit
will
create
and
operate
a
new
company
called
NewCo
that
will
manage
Celsius’
illiquid
assets,
including
its
mining
business,
according
to
the
press
release.
“Under
the
Plan,
Celsius’
account
holders
will
own
100%
of
the
new
equity
in
NewCo
(subject
to
dilution
by
the
equity
to
be
distributed
to
Fahrenheit
as
management
fees),”
Celsius
said.
A
new
board
of
directors,
a
majority
of
which
will
be
appointed
by
creditors,
will
oversee
NewCo,
according
to
the
statement.
NewCo’s
assets
will
include
$500
million
in
liquid
cryptocurrency,
DeFi
cryptocurrency
assets,
private
equity
and
venture
fund
investments,
mining
among
others.
“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,”
Celsius
said.
Fahrenheit
consists
of
mining
company
US
Bitcoin
Corp.,
digital
assets
investing
firm
Arrington
Capital,
Proof
Group,
crypto
entrepreneur
Steven
Kokinos
and
Ravi
Kaza.
Celsius
had
originally
reached
a
deal
with
NovaWulf
Digital
Management
to
buy
the
firm’s
lending
operations
in
February.
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