• Fahrenheit LLC – a consortium of investors – has won the court-approved auction process to acquire Celsius Network.
• The new company will acquire Celsius’ institutional loan portfolio, mining business, and alternative investments for the benefit of account holders.
• The agreement also requires the new company to receive $500 million in liquid cryptocurrency.
Celsius Bankruptcy Auctions
The development marks the end of Celsius’ long-drawn bankruptcy auction. Fahrenheit LLC – a consortium of investors that includes the largest crypto exchange in the United States – has emerged as the winner in the court-approved auction process to acquire insolvent lender Celsius Network.
Fahrenheit Takes Over
Fahrenheit will provide the capital, management team, and technology required to successfully set up and operate the new company. It is also required to pay a cash deposit of $10 million within three days to seal the deal. Fahrenheit’s consortium consists of US Bitcoin Corp, Proof Group Capital Management LLC, Ravi Kaza, former Algorand CEO Steven Kokinos, and Coinbase. According to the court filing,the group will acquire Celsius’ institutional loan portfolio, mining business, and alternative investments for the benefit of account holders.
Board Of Directors
The new company will be spearheaded by a Board of Directors, a majority of which will be appointed by creditors. The distribution of Celsius’s liquid crypto to account holders, settlements with the Custody and Withhold groups, as well as managing Celsius’ illiquid assets bythe new company have been outlined as partofagreement..
The deal also requires thenewcompany toreceive$500millioninliquidcryptocurrenc y , which maybereducedto$450millionintheeventofsecondarymarketpressure on certainassets .