Bankrupt cryptocurrency finance firm Celsius Network LLC announced Thursday that it has selected Fahrenheit’s proposal as the winning bidder to emerge from bankruptcy by running a new creditor-owned entity.
Fahrenheit, a consortium that includes blockchain-based venture capital firm Arrington Capital, will provide the funding, management team and technology to set up and operate the new company (NewCo), Celsius said.
“Under this plan, Celsius account holders will own 100% of NewCo’s new equity,” the company said, adding that NewCo would be overseen by a new board of directors with a creditor-appointed majority. rice field.
New Jersey-based Celsius also confirmed that it has secured a preliminary bid with the Blockchain Recovery Investment Consortium (BRIC), an affiliate holding company of Winklevoss-owned Gemini Trust.
Celsius filed for Chapter 11 protection in July and was one of several crypto financiers to go bankrupt following the industry’s rapid growth during the coronavirus pandemic.
The company opened its auction on April 22nd, looking for a buyer to bring its crypto lending and bitcoin mining business out of bankruptcy.
The company had originally planned to accept Nova Wolf’s bid, but it took longer to consider additional bids from Fahrenheit and BRIC, the holding company under the Winklevoss-owned Gemini Trust.
https://www.channelnewsasia.com/business/crypto-lender-celsius-picks-fahrenheits-bid-bankruptcy-exit-3514246 Crypto Financial Firm Celsius Selects Fahrenheit Bid To Eliminate Bankruptcy