Celsius, a defunct crypto lender, has recently submitted an updated bankruptcy plan reflecting the successful acquisition of its assets by the Fahrenheit consortium. The consortium, which comprises venture capital firm Arrington Capital and miner US Bitcoin Corp, emerged as the winning bidder in May, outshining an attempt by NovaWulf to claim the company. The assets of Celsius were previously estimated to be worth around $2 billion.
The newly filed plan, presented to the New York bankruptcy court overseeing the wind-up, awaits approval but is already facing resistance from creditors. David Adler, representing a group of borrowers, voiced his opposition on Twitter, stating that the proposed treatment violates consumer lending laws.
He emphasized that his clients would oppose the plan because Celsius has failed to return their collateral. Adler, a lawyer from McCarter & English, called for Celsius to actively engage with the parties involved and demonstrate progress in the case. He criticized the lack of communication with his clients, stating that they have been disregarded and kept in the dark for the past seven weeks, feeling “treated like mushrooms.”
According to the terms of the Fahrenheit deal, the new company will receive a substantial amount of liquid cryptocurrency, ranging from $450 to $500 million. Additionally, US Bitcoin Corp plans to develop various crypto mining facilities, including the construction of a new 100 megawatt plant.
The bankruptcy plan put forward by Celsius will be subject to review and approval by the New York bankruptcy court. While the consortium’s bid has emerged as the leading option, the resistance from creditors and concerns raised by David Adler highlight potential obstacles that need to be addressed.
The future of Celsius and the fate of its assets will be determined through the bankruptcy proceedings, providing an outcome that could have implications for the wider cryptocurrency lending industry.
