Celsius

Bitcoin

Algorand

Bankrupt crypto lending firm <a href="https://cryptoslate.com/companies/celsius-network/" rel="noopener noreferrer nofollow">Celsius</a> has found a way to fund its proposed relaunch, according to reports from Bloomberg on <a href="https://www.bnnbloomberg.ca/bankrupt-celsius-says-restart-is-crypto-customers-best-option-1.1979321" rel="noopener noreferrer nofollow">Oct. 2</a>. 
Christopher S. Koenig, a lawyer for Celsius, said during bankruptcy proceedings that the company intends to exit bankruptcy with $450 million in seed funding. 
That funding will come from Fahrenheit LLC, a group of companies that is otherwise highly involved in Celsius’ bankruptcy case. Fahrenheit won the bidding process on Celsius’ assets in <a href="https://cryptoslate.com/fahrenheit-wins-auction-for-celsius-assets/" rel="noopener noreferrer nofollow">May 2023</a>; voting on that asset sale took place in <a href="https://cryptoslate.com/celsius-set-to-vote-on-asset-sale-plan-after-court-approves-disclosures/" rel="noopener noreferrer nofollow">August</a>. 
The revived version of Celsius reportedly will operate as “user-owned Bitcoin miner,” leaving the fate of the company’s once-central lending business uncertain. 
Celsius may be able to more effectively compensate customers and creditors if its revival plan is successful. Though Celsius expects to distribute $2 billion of cryptocurrency, it also intends to provide creditors with stock in the new company — plus stake in litigation against former Celsius CEO <a href="https://cryptoslate.com/people/alex-mashinsky/" rel="noopener noreferrer nofollow">Alex Mashinksy</a> and other executives. 
Celsius aims to begin repaying users by the end of 2023. That target date has been in place <a href="https://cryptoslate.com/celsius-reaches-settlement-that-will-enable-users-to-receive-assets-by-year-end/" rel="noopener noreferrer nofollow">since June</a> when the firm reached various related settlements. 
<h2 id="revival-plan-has-developed-since-august">Revival plan has developed since August</h2> 
Bloomberg previously reported that Celsius aimed to relaunch its firm in <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;ved=2ahUKEwjnzsHytNiBAxUoIDQIHT-IBE8QFnoECBoQAQ&amp;url=https%3A%2F%2Fwww.bnnbloomberg.ca%2Fcelsius-to-poll-customers-on-launching-new-user-owned-company-1.1958827&amp;usg=AOvVaw28wbVd_ttlqBywjAFnKdBo&amp;opi=89978449" rel="noopener noreferrer nofollow">August</a>, at which time the firm began to poll customers on that course of action. On <a href="https://twitter.com/CelsiusNetwork/status/1706430965701087676?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">Sept. 26</a>, Celsius announced that 95% of customers voted to accept the recovery plan. 
Bloomberg’s latest report suggests that some parties remain in opposition: one creditor, which is owed $82 million, believes advisers have overvalued the new firm. 
It should also be noted that Celsius and its customers cannot act alone. Securities regulators and the bankruptcy judge will ultimately need to approve the plan. 
Plans for Celsius’ reopening otherwise developed in September as former Algorand leader <a href="https://cryptoslate.com/new-celsius-2-0-company-to-be-led-by-former-algorand-ceo/" rel="noopener noreferrer nofollow">Steven Kokinos</a> joined the revival company as CEO, and as Arrington Capital CEO and TechCrunch founder <a href="https://cryptoslate.com/techcrunch-founder-arrington-steps-down-from-new-celsius-board-over-constitution-disagreement/" rel="noopener noreferrer nofollow">Michael Arrington</a> stepped down from the board. 
The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/celsius-lawyer-says-revival-plans-include-450m-in-seed-funding/">Celsius lawyer says revival plans include $450M in seed funding</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Celsius lawyer says revival plans include $450M in seed funding

Table of Contents

CryptoSlate

Other articles published on Oct 3, 2023

Was the Recent Bitcoin Price Rally a Trap? Positive Signals Maintained!

Tezos Price Prediction 2024, 2025, 2030: Will XTZ Price Regain $2 Mark This Year?

UAE's Brightest Minds to Enter Bybit's Crypto Hackathon in UAE

Crypto: After Coinbase, Singapore grants MPI License to Sygnum

Sam Bankman-Fried’s Lawyers Fight Remote Testimony By FTX Ukrainian Client

Halving 2024: Market Boom and Unique Opportunity to Double Your Portfolio with Cannafarm Ltd

Join our free newsletter for daily crypto updates!