Bankrupt cryptocurrency finance company Celsius Network LLC has selected Fahrenheit as the winning bidder, which will provide the capital and team to operate the new company.
Fahrenheit, which includes a group of cryptocurrency companies, was selected as the winning bidder on Thursday morning, according to a press release.
The Blockchain Recovery Investment Consortium (BRIC) has been selected as a preliminary bid.
The official committee of Celsius unsecured creditors tweeted, “The committee thanks Celsius and the bidders for their efforts in creating tremendous value for Celsius users.”
Celsius filed for bankruptcy last July, and New York regulators subsequently accused former Celsius CEO Alex Mashinsky of lying to investors about the company’s “dire financial situation.” sued Mr.
What are your plans?
According to a press release, Fahrenheit will form and operate a new company called Nuko, which will manage Celsius’s illiquid assets, including its mining operations.
“Under this plan, Celsius account holders will own 100% of the new shares in Nuco (subject to share dilution and will be distributed to Fahrenheit as a management fee),” Celsius said. Stated.
A new board, most of which will be appointed by creditors, will oversee Nuco, according to a statement.
NewCo’s assets include $500 million in liquid crypto assets, DeFi crypto assets, private equity and venture fund investments, and mining.
“In the next few weeks, Celsius will negotiate and publish a plan sponsorship agreement with Fahrenheit, a backup plan sponsorship agreement with the BRICs, a revised Chapter 11 plan, and a disclosure statement, all of which will lead to bankruptcy. It requires court approval,” Mr. Celsius said.
Fahrenheit will be joined by mining firm US Bitcoin Corp, digital asset investment firm Arrington Capital, Proof Group, and crypto entrepreneurs Steven Kokinos and Ravi Kaza.
Celsius originally reached an agreement with Novawolf Digital Management to acquire the company’s lending business in February.