In an auction scheduled on April 25 in New York, two new consortiums will contend over the assets of the bankrupt cryptocurrency lender Celsius Network.
Celsius was a well-known cryptocurrency lending platform. The Celsius platform’s financial status declined in May of last year as a result of a very unpredictable market environment. Midway through June 2022, Celsius stopped providing withdrawal services and eventually applied for bankruptcy in the Southern District of New York’s U.S. Bankruptcy Court under the Chapter 11 statute.
A recent court document listed the consortiums that intended to participate in the Celsius auction on April 25. These businesses are led by former Algorand CEO Steven Kokinos, Fahrenheit by venture capital company Arrington Capital, Proof Group Capital Management, and investment banker Ravi Kaza.
Blockchain Recovery Investment Committee is another bidder for the failed cryptocurrency lending facility on the Celsius exchange. The cryptocurrency exchange Gemini is one of the platform’s supporters.
Michael Arrington, the owner of Fahrenheit, mentioned Coinbase as one of the organizations supporting the Fahrenheit consortium.
With NovaWulf Digital Management, the “stalking horse bidder”, both consortiums are arguing over the assets. The NovaWulf plan calls for a direct monetary commitment of between $45 million and $55 million as well as the development of a new public platform that is entirely owned by Celsius creditors. According to NovaWulf’s plan, customers should get back up to 70% of their money.
The Fahrenheit alliance also suggests founding a new business “with the sole goal of growing those assets to make stakeholders whole” in light of Arrington’s comments.” The organization would be led by “a group of proven crypto operators” and possess “substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio,” according to Arrington.
Numerous experts expressed their satisfaction with the actions taken by well-known organizations towards Celsius and remarked that they will improve the situation for Celsius’s creditors as well as further increase investor trust in the capabilities of crypto lending services.
On the Celsius network, which is run by cryptocurrency lender Celsius, Cel is a native token. The price graph shows that the Cel token’s value unexpectedly increased as a result of this news.
Earlier this year, a couple of cryptocurrency analysts alleged that the Celsius team had artificially inflated the price of the Cel token to keep the business afloat after declaring bankruptcy.