Crypto lender Celsius, which is no longer operational, has submitted a revised bankruptcy plan following a triumphant asset bid from the Fahrenheit consortium. The consortium, composed of various buyers, including venture capital firm Arrington Capital and miner US Bitcoin Corp, emerged as the successful bidder in May, thwarting an effort by NovaWulf to acquire the company.
The assets of Celsius were previously estimated to be worth approximately $2 billion. The plan was submitted on Thursday and now awaits approval from the New York bankruptcy court overseeing the liquidation process, while creditor resistance is anticipated.
David Adler, a lawyer from McCarter & English, took to Twitter to express his opposition to the proposed treatment, claiming that it violates numerous consumer lending laws. Adler represents a group of borrowers involved in the case who are unsatisfied with Celsius’ failure to return their collateral.
He stated: “Although the Debtors are demanding repayment of the loans (i.e. demanding performance by the Borrowers), the Debtors have no intention whatsoever of performing their contractual obligations (i.e. returning the collateral to the borrowers). This proposed “treatment” violates every consumer lending law out there (state, federal), and the ad hoc Borrower group will be opposing this plan.”
Adler added that his clients would challenge the plan and emphasized the importance of the Celsius group demonstrating progress and communicating with stakeholders to maintain their exclusive right to propose a bankruptcy plan. Adler criticized the lack of attention his clients have received, feeling disregarded and kept in the dark for the past seven weeks.
As part of the Fahrenheit deal, the newly formed company is set to receive a substantial amount of liquid cryptocurrency, estimated to be between $450 and $500 million. US Bitcoin Corp has also committed to constructing various cryptocurrency mining facilities, including a new 100-megawatt plant.
