A group of crypto investors and companies called Fahrenheit has won the auction to buy the assets of Celsius Network, a crypto lending platform that went bankrupt in April.
Fahrenheit Consortium Wins Auction for Insolvent Crypto Lender Celsius’s Assets
A group of crypto investors and companies called Fahrenheit has won the auction to buy the assets of Celsius Network, a crypto lending platform that went bankrupt in April. According to court documents, Fahrenheit offered $2 billion for Celsius' assets, which include its loan portfolio, staked crypto, mining operations, and other investments. Notable members of the Fahrenheit consortium US Bitcoin Corp and Arrington Capital.
Celsius Network was one of the largest crypto lending platforms in the world, with over 1 million users and over $20 billion in assets under management at one point. However, it faced legal troubles after the SEC accused it of offering unregistered securities and violating investor protection laws. Celsius denied the allegations but failed to raise enough funds to continue its operations. It filed for Chapter 11 bankruptcy protection in April and put its assets up for sale.
Fahrenheit said it plans to use Celsius' assets to create a new decentralized lending platform that will offer better rates and transparency to borrowers and lenders. It also said it will honor all existing contracts and obligations with Celsius' customers and partners. Fahrenheit's bid beat out another offer from NovaWulf, a crypto investment firm that bid $1.8 billion for Celsius' assets. A third bidder, the Blockchain Recovery Investment Consortium, was selected as a backup in case Fahrenheit fails to close the deal.