Celsius Network, a major crypto lender, is up for auction on April 25th in New York. According to reports and court filings, two separate consortiums are acting as bidders for the assets, with one being Fahrenheit, backed by venture capital firm Arrington Capital and the other being Blockchain Recovery Investment Committee led by Gemini, VanEck, Global X Digital and Plutus Lending. NovaWulf Digital Management has already put forward a proposal that involves direct cash contribution of $45-$55 million and the creation of a new platform owned by the creditors. The Fahrenheit consortium, on the other hand, has proposed the formation of a new firm dedicated to growing the assets of Celsius' customers. The auction is a significant step to recover funds affected by the crypto lender's bankruptcy filing in July 2022, which stemmed from troubles with market conditions and rumors of insolvency.

Both of the bidding consortiums have strong backgrounds in the cryptocurrency market. While Celsius' investors assume that the auction is essential to recoup their assets, the fate of the proposed methods is yet to be seen. One possible outcome is the creditors fully claiming the funds NovaWulf is offering, effectively returning the assets to their original owners. However, if the Fahrenheit consortium's plan is accepted, a new company will be created to grow the assets, potentially allowing for larger returns. In addition to the direct cash contribution, this company will also potentially hold bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio.

For now, Celsius' customers can only wait and see whether the auction will come to a fruitful solution for all parties involved. With both of the bidding consortiums being strong players in the cryptocurrency market, it is expected that both sides come up with a viable solution to return the assets.



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