Celsius updates bankruptcy plan after Fahrenheit deal.
The defunct cryptocurrency lender, Celsius, has submitted an updated bankruptcy plan to reflect the successful acquisition of its assets by the Fahrenheit consortium.
The consortium, including venture capital firm Arrington Capital and miner US Bitcoin Corp, was announced as the successful bidder in May, beating out NovaWulf’s attempt to claim the company. The assets were previously valued at around $2 billion.
The plan, filed on Thursday, must be approved by the New York bankruptcy court overseeing the liquidation. However, there is already pushback from creditors.
David Adler of law firm McCarter & English, who represents a group of borrowers in the case, tweeted that the proposed treatment violates consumer lending laws. Adler’s clients will oppose the plan because Celsius won’t return their collateral.
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Adler also stated that Celsius needs to demonstrate progress in the case and communicate with stakeholders to maintain its exclusive right to propose a bankruptcy plan. He said his clients had been ignored and “treated like mushrooms for the past seven weeks.”
Under the Fahrenheit deal, the new company will receive between $450 million and $500 million in liquid cryptocurrency. US Bitcoin Corp will also construct several crypto mining facilities, including a new 100-megawatt plant.
Read more: Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius
Edited by Sandali Handagama.
