Celsius Network Plans for Relaunch With $450M Seed Funding

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The Celsius case is a significant test for the crypto industry. If they successfully relaunch, it might provide a blueprint for other failed platforms. But there are many legal and ethical hurdles to clear first. Let’s delve in to know more about the company’s revival story. 

Seed Funding of $450M to Revive the Ashes: Here’s the insight

Bankrupt crypto lending firm Celsius is making strides towards a revival. According to the Bloomberg report, the company’s lawyer, Christopher S. Koenig, revealed plans for a relaunch with a substantial $450 million in seed funding. But who is moving the stone for the company? Fahrenheit LLC, a group closely tied to Celsius’ bankruptcy case, is expected to provide this funding. It will be a touch of phoenix for Celsius as it is poised to transition into a “user-owned Bitcoin miner,” potentially leaving the future of its lending business uncertain. 

If all goes well, Celsius could more effectively compensate customers and creditors. The company aims to distribute $2 billion in cryptocurrency and offer creditors stock in the new entity, along with a stake in litigation against former Celsius CEO Alex Mashinksy and other executives. The repayment process is slated to commence by the end of 2023. The revival plan has been developing since August, with Celsius garnering support from 95% of its customers. 

Crypto Resistance Voicing

However, there are opposing voices, with one creditor expressing doubt about the new firm’s valuation. It’s important to note that regulatory approval will be crucial for Celsius and its customers to move forward with the plan. The reopening plans have seen significant developments, including appointing former Algorand leader Steven Kokinos as CEO and the resignation of Arrington Capital CEO and TechCrunch founder Michael Arrington from the board. 

Conversely, The SEC opposes Coinbase’s role in Celsius’ token redistribution plan due to the ongoing legal dispute between Coinbase and the SEC. The SEC argues that Coinbase’s involvement goes beyond its designated role as a distribution agent. The US Bankruptcy Court will make the final decision on October 2. For now, Celsius’ redistribution plan seems to be proceeding as intended.