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Crypto Lender Celsius Updates Bankruptcy Plan After Fahrenheit Deal
The plan, filed on Thursday, could face legal opposition from borrowers.
Defunct crypto lender Celsius has filed an updated bankruptcy plan to reflect a successful bid for assets by the Fahrenheit consortium.
Fahrenheit, a consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, was announced as successful bidder in May, ousting an attempt by NovaWulf to claim the company whose assets were previously valued at around $2 billion.
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The plan, filed early Thursday, must be agreed by the New York bankruptcy court overseeing the wind-up, and is already set to see creditor pushback.
“This proposed treatment violates every consumer lending law out there,” tweeted David Adler of law firm McCarter & English, saying that the group of borrowers he represents in the case will oppose the plan because Celsius won’t return their collateral.
The Celsius group “need to show that they are moving the case forward and communicating with constituencies” in order to keep the exclusive right to propose a bankruptcy plan, Adler added, saying that his clients had been ignored and “treat[ed] like mushrooms for the past seven weeks.”
Under the Fahrenheit deal, the new company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100 megawatt plant.
Read more: Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
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