#Celsius Approves Asset Sale Plan to Fahrenheit Consortium
A court ruling mandates creditors of the defunct cryptocurrency lending platform, Celsius Network, to conduct a vote on the sale of digital assets to the Fahrenheit consortium. This document marks the final phase of the company's bankruptcy proceedings. If the deal goes through successfully, customers can expect a return of 67-85% of their funds.
Voting ballots will be distributed to creditors. The Fahrenheit consortium comprises venture organization Arrington Capital, Proof Group, miner U.S. Bitcoin Corp, and individual investors including former Algorand head Steven Kokinos and Ravi Kazaz.
Chris Ferraro, the acting CEO of Celsius, stated that the company remains focused on "delivering the best outcomes" for all parties involved and returning funds "as soon as possible."
Previously, it was reported that the lending platform had entered into several agreements that paved the way for court approval to refund customers.
These agreements laid the groundwork for the approval of Celsius' restructuring plan in October. Creditors and investors will begin receiving funds by the end of the year if the decision is favorable. The company also reached an agreement with Series B investors for the distribution of $25 million from the sale of crypto custodian GK8.
After filing for bankruptcy, the company reported a balance shortfall of $1.2 billion. In August, it was revealed that the company's liabilities exceeded its assets by $2.85 billion.
In September, platform CEO Alex Mashinsky stepped down from his position. In early 2023, the New York Attorney General's Office accused him of defrauding investors "out of billions of dollars."
On July 13, the US Department of Justice brought seven criminal charges against the former Celsius CEO, including securities fraud, manipulation of CEL token price, and misleading investors.
Later, the US Federal Trade Commission announced the resolution of claims against the company, with the platform agreeing to pay $4.7 billion.