Celsius, a defunct crypto lender, has filed an updated bankruptcy plan to reflect a successful bid for assets by the Fahrenheit consortium. The consortium, which includes venture capital firm Arrington Capital and miner US Bitcoin Corp, was announced as the successful bidder in May. The plan, filed early Thursday, must be agreed by the New York bankruptcy court overseeing the wind-up.
This proposed treatment violates every consumer lending law out there, tweeted David Adler of law firm McCarter & English. Adler, who represents a group of borrowers in the case, said that his clients will oppose the plan because Celsius won’t return their collateral. He added that the Celsius group need to show that they are moving the case forward and communicating with constituencies in order to keep the exclusive right to propose a bankruptcy plan.
Under the Fahrenheit deal, the new company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100-megawatt plant.