According to court documents, the cryptocurrency consortium Fahrenheit was the winning bidder to acquire the insolvent cryptocurrency lender Celsius Network.

The acquisition includes assets previously valued at approximately $2 billion that belonged to Celsius.

The court documents, filed in the early hours of May 25, indicate that the consortium will acquire the institutional loan portfolio, staked cryptocurrencies, mining unit, and other alternative investments of Celsius Network.

Within three days, the group must deposit $10 million to finalize the agreement.

Fahrenheit, a consortium of buyers including venture capital firm Arrington Capital and miner US Bitcoin Corp., was selected as the winning bidder following a lengthy auction.

The backup position was secured by the Blockchain Recovery Investment Consortium (BRIC), which included Van Eck Absolute Return Advisers Corp. and GXD Labs. Initially favored, rival bidder NovaWulf ultimately lost out.

According to the terms of the agreement, the new company will receive between $450 million and $500 million worth of liquid cryptocurrency. US Bitcoin Corp. will also build crypto mining facilities, such as a 100-megawatt power plant.

Although Celsius and its creditors have accepted the offer, regulatory approval is still necessary for the acquisition to be finalized.

The bankruptcy court judge, Martin Glenn, had previously warned of potential “regulatory roadblocks” that could impede the sale of Celsius.

Similarly, crypto exchange Binance.US canceled its $1 billion acquisition of Voyager’s assets due to federal officials’ appeals, citing the uncertain regulatory environment in the United States.

Celsius plans to negotiate and publicly file a plan sponsor agreement with Fahrenheit, a backup plan sponsor agreement with BRIC, a revised Chapter 11 plan, and a disclosure statement in the coming weeks, pending bankruptcy court approval.

In July 2022, Celsius filed for bankruptcy due to a surge in withdrawals resembling a bank run, revealing underlying liquidity issues.

Its demise foreshadowed a turbulent period for the cryptocurrency industry, characterized by the subsequent failure of numerous prominent exchanges, lenders, and venture capital firms.

It resulted in a protracted “crypto winter” in the industry.