Cryptocurrency conglomerate Fahrenheit has won a bid to buy Celsius assets worth over $2 billion, offering a glimmer of hope to users and creditors.
Users with funds stuck in the platform can finally see a glimmer of hope, as Fahrenheit won the bid to buy back Celsius’s assets.
NEWCO WILL USE CELSIUS’ PROPERTY
According to a source from Reuters, Celsius plans to speed up bankruptcy proceedings by choosing crypto conglomerate Fahrenheit to take over the assets. In addition, Fahrenheit will operate Celsius under the new brand of “NewCo”. Not only that, NewCo will be run by a new board of directors, most of which will be appointed by creditors.
The crypto lending platform said:
Under the Plan, Celsius account holders will own 100% of the new equity in NewCo.
Fahrenheit is a cryptocurrency consortium that includes companies like Arrington Capital and the American Data mining group. In February, Celsius announced a list of customers who could withdraw 94% of their assets. Thanks to Fahrenheit’s deal, the wait for the remaining customers can also be over.
Perhaps, creditors can breathe a sigh of relief on the positive news. However, the agreement has yet to be approved by regulation.
DO OWNERS BE REFUNDED AFTER ONE YEAR?
Last year, Celsius halted withdrawals after filing for chapter 11 bankruptcy in July 2022. At that time, the Chapter 11 bankruptcy filing in New York revealed a $1.2 billion deficit in its balance sheet and more than 100,000 creditors. Celsius was the victim of a market crash caused by the collapse of the Terra Luna ecosystem.
After filing with the court, Celsius also made a number of asset recovery efforts. For example, the company asked to sell a stablecoin to support liquidity. A month ago, Celsius withdrew more than 6,000 staked ETH, worth more than 13 million USD.