Bankrupt Celsius Network Secures $450M in Funding for Relaunch
Reports from Bloomberg on Oct. 2 reveal that bankrupt crypto lending firm Celsius has a plan to fund its proposed relaunch. During bankruptcy proceedings, lawyer Christopher S. Koenig disclosed that Celsius plans to exit bankruptcy with $450 million in seed funding.
The funding will come from Fahrenheit LLC, which won the bidding process for Celsius’ assets back in May 2023. The revived Celsius is expected to operate as a “user-owned Bitcoin miner,” raising questions about the future of its lending business.
Celsius’ Revival Plan and Repayment Strategy
Celsius aims to compensate customers and creditors more effectively with a distribution of $2 billion in cryptocurrency, along with stock in the new company and stakes in litigation against former CEO Alex Mashinksy and other executives. The company plans to start repayments by the end of 2023.
Since June, Celsius has been working towards its revival plan, reaching settlements and agreements to ensure a smooth relaunch. The plan has garnered support from customers and is set to move forward after approvals from securities regulators and the bankruptcy judge.
Revival Plan Progress and Leadership Changes
In recent developments, former Algorand leader Steven Kokinos joined as CEO, while Arrington Capital CEO and TechCrunch founder Michael Arrington stepped down from the board. Despite some opposition from creditors, Celsius is moving forward with its relaunch plans.
For more information on Celsius’ $450M revival plans, read the full article here.
