Celsius, the bankrupt crypto lending firm, has revealed its plan to secure $450 million in seed funding for its proposed relaunch. This funding is expected to come from Fahrenheit LLC, a group of companies highly involved in Celsius’ bankruptcy case. Fahrenheit had previously won the bidding process for Celsius’ assets, with the asset sale voting taking place in August.
The revived version of Celsius intends to operate as a “user-owned Bitcoin miner,” signaling uncertainty regarding the future of its once-central lending business. If the revival plan is successful, Celsius hopes to more effectively compensate customers and creditors. While the company expects to distribute $2 billion worth of cryptocurrency, it also plans to provide creditors with stock in the new company and stakes in litigation against former Celsius CEO Alex Mashinksy and other executives.
Celsius aims to begin repaying users by the end of 2023, with the target date set in June when the firm reached various related settlements. The revival plan has been in development since August, and despite receiving support from 95% of customers, there are still opposing parties. One creditor, owed $82 million, believes the new firm has been overvalued. Approval from securities regulators and the bankruptcy judge is required for the plan to proceed.