Celsius, the cryptocurrency lender, has made a surprising leap forward in its efforts to relaunch operations by submitting an amended bankruptcy plan. The plan reflects the success of the Fahrenheit consortium, comprised of prominent investors like Arrington Capital and US Bitcoin Corp., who outbid NovaWulf and secured Celsius’ assets valued at $2 billion.
The amended bankruptcy plan has been submitted to the New York bankruptcy court and awaits approval. However, creditors are expected to raise objections, as concerns have already been voiced.
David Adler, representing borrowers from the law firm McCarter & English, opposed the proposed treatment outlined in the plan, arguing that Celsius would violate consumer lending laws by failing to return collateral to his clients. Adler emphasized their strong intention to vehemently contest the plan, as properly handling their collateral throughout the bankruptcy process is paramount.
Adler strongly criticized Celsius for their poor communication and urged the company to demonstrate progress in the case and engage with stakeholders. He accused Celsius of neglecting his clients, leaving them uninformed and frustrated for seven weeks.
Despite the criticisms, the Fahrenheit consortium remains hopeful for Celsius’ resurgence. According to the agreement, the re-established company would receive a substantial injection of liquid cryptocurrencies amounting to $450 to $500 million.
Additionally, US Bitcoin Corp, a leading mining company, has pledged to construct advanced crypto-mining facilities, including a 100-megawatt power plant. These initiatives align with the consortium’s long-term goals for Celsius and bring renewed optimism to the cryptocurrency lending sector.
The emergence of the Fahrenheit consortium as the primary bidder revitalizes Celsius and instills fresh hope in the industry. However, Celsius faces the formidable task of addressing creditor concerns while demonstrating a commitment to transparency and inclusivity as the bankruptcy court evaluates the proposed plan. The court’s decision and Celsius’ subsequent actions will be closely watched as the company embarks on its journey of recovery and redemption.
The Celsius-Fahrenheit saga continues to captivate industry observers, highlighting the challenges and opportunities that lie ahead for cryptocurrency lenders in the ever-evolving digital finance landscape.