Bankrupt crypto lender Celsius to be acquired soon?

  • Troubled crypto firm Celsius has attracted bids from 30 potential buyers for its mining and retail business.
  • Celsius has disclosed that Galaxy Digital Holding plans to buy its custody platform, GK8, from Celsius.
  • As the decision to sign the deal with bidders is not final yet, the restructuring plan is still on the table.

According to a corporate presentation, 30 possible purchasers have submitted offers for the mining and retail operations of the bankrupt crypto firm Celsius. The presentation is included with a filing to the Southern District of New York in the US Bankruptcy Court.

Due to the effects of the May market crisis, Celsius halted customer withdrawals and filed for Chapter 11 bankruptcy in July 2022. Celsius has been attempting to get in touch with potential buyers for its retail and mining businesses since September.  It received offers from 30 bidders that are not yet disclosed.

According to a Bloomberg article, a lawyer for Celsius reportedly told the court that they will make an announcement by the middle of January on the company’s interest in negotiating a deal.

Crypto firm Celsius reorganization plan still possible?

Voyager Digital, another crypto lender that filed for bankruptcy, was recently acquired by Binance. Binance submitted the highest offer to purchase Voyager Digital, totaling to $1.022 billion. The public speculates that Celsius may have been offered for sale by Changpeng Zhao-led exchange as well.

The reorganization plan is still a possibility because the decision to sign the agreement with bidders has not yet been made.

Celsius has disclosed that Galaxy Digital Holding plans to buy its custody platform, GK8, from Celsius. Additionally, Celsius plans to sell stablecoins worth $18 million as part of the restructuring. With these sales, the corporation anticipates total runaway to continue into May or June 2023 in order to maintain operations.

Additionally, Celsius Network received court permission to give its staff incentives totaling $2.8 million. With the Key Employee Retention Program (KERP), the business hopes to keep its staff and maintain operations.

Cryptopolitan recently covered an article on how Crypto investors have seen the worst of financial winters in 2022.  However, for some Celsius crypto investors, that story is set to change.  A US bankruptcy judge overseeing the Celsius Networks bankruptcy case mandated that the crypto lender reimburse custodial account holders $50 million worth of crypto.

Source: Cryptopolitan

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