Celsius Files Updated Bankruptcy Plan Following Asset Acquisition by Fahrenheit Consortium

Celsius Files Updated Bankruptcy Plan Following Asset Acquisition by Fahrenheit Consortium

Celsius, a defunct crypto lender, has submitted an updated bankruptcy plan following the successful bid for its assets by the Fahrenheit consortium. Comprised of buyers such as venture capital firm Arrington Capital and miner US Bitcoin Corp, the Fahrenheit consortium emerged as the winning bidder in May, surpassing the claim by NovaWulf for the company whose assets were previously valued at around $2 billion.

The filed plan, submitted on Thursday, requires approval from the New York bankruptcy court overseeing the winding-up process. However, it is anticipated that there will be opposition from creditors. David Adler of law firm McCarter & English expressed concerns about the proposed treatment, stating that the borrowers he represents in the case will oppose the plan due to Celsius’ failure to return their collateral. Adler further criticized the Celsius group for their lack of communication with the relevant parties, emphasizing the need for progress in order to retain the exclusive right to propose a bankruptcy plan. According to Adler, his clients have been neglected and left in the dark for the past seven weeks.

As part of the Fahrenheit deal, the new company will receive a substantial amount of liquid cryptocurrency, estimated to be between $450 and $500 million. Additionally, US Bitcoin Corp plans to develop various crypto mining facilities, including a new 100 megawatt plant.