Celsius Nears Asset Sale To Fahrenheit Consortium Amidst Legal Turbulence
- Celsius gains approval to hold a vote on the asset sale to the Fahrenheit consortium.
- Creditors could receive 67–85% of holdings, mainly in Bitcoin and Ethereum; voting is scheduled from August 24 to September 22.
- Despite the ex-CEO’s legal troubles, Celsius remains committed to reimbursing customers.
Crypto lending firm Celsius, which faced bankruptcy proceedings last year, has received the green light from a judge to proceed with a voting process concerning the sale of its assets to the Fahrenheit consortium.
The proposed plan aims to offer creditors a restitution range spanning from 67% to 85% of their holdings, with a major portion of the reimbursements planned in Bitcoin and Ethereum.
Scheduled between August 24 and September 22, the voting procedure will involve a consortium led by notable entities like Arrington Capital and U.S. Bitcoin Corp.
The firm’s ex-CEO, Alex Mashinsky, faced fraud charges that led to his arrest in July. However, the company itself remained unindicted. Moreover, Celsius asserts that its plans to reimburse its customers will not be hindered by the $4.7 billion fine imposed on it by the Federal Trade Commission.
A legal case was brought forward by former director James in January, which foreshadowed an unveiled indictment last month. This indictment alleged that between 2018 and June 2022, Mashinsky masterminded a comprehensive scheme to mislead Celsius customers, artificially inflating the value of its proprietary token, CEL. Mashinsky, however, has categorically denied these charges.
Earlier proposed plans by Celsius involved creating a new entity owned by the creditors. This new company would have distributed around $2 billion in Bitcoin and Ethereum, with clients benefiting through equity participation.
The entity would have taken over Celsius’s mining operations, institutional loans, private equity, venture capital, and the $500 million investment in “liquid crypto,” as outlined in legal documents.
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