Celsius Network to Relaunch With $450M Seed Funding; Here’s the Plan

The crypto community is holding its breath as Celsius, a once-bankrupt crypto lending firm, charts a course towards revival. With a substantial infusion of $450 million in seed funding, the company seems poised for a remarkable comeback, giving much-needed hope to other failed platforms.

Dive in to understand Celsius’s struggles and challenges better, and make the decision for yourself – can they really emerge victorious?

The Funding Lifeline

Christopher S. Koenig, the legal genius behind Celsius, has unveiled an ambitious revival plan. This financial CPR is set to come from none other than Fahrenheit LLC, a group intricately linked to Celsius’ bankruptcy saga. The much-needed infusion of funds promises to be a turning point for Celsius, as it embarks on a journey to transform itself into a “user-owned Bitcoin miner.”

However, this transformation raises questions about the future of its lending business.

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.

Read More: Celsius and Core Scientific Reach $45 Million Deal to Settle Mining Dispute

The Community Speaks Out

Celsius’ revival blueprint has been under construction since August and has garnered substantial support. An impressive 95% of its customers have thrown their weight behind the endeavor. However, not everyone is singing praises.

Some creditors are expressing doubt about the new firm’s valuation. Regulatory approval will be crucial for Celsius and its customers to move forward with the plan. Recent developments in the reopening plan include the appointment of Steven Kokinos, formerly with Algorand, as the new CEO. Notably, this transition also witnessed the departure of Michael Arrington, CEO of Arrington Capital and founder of TechCrunch, from the board.

Coinbase Controversy in the Spotlight

In another twist of fate, the SEC threatens to play spoilsport again.

The SEC’s disapproval is directed at Coinbase’s role in Celsius’ token redistribution scheme, citing an ongoing legal feud between the two entities. The regulatory watchdog contends that Coinbase has overstepped its bounds as a mere distribution agent. The final verdict on this issue rests with the US Bankruptcy Court, which is scheduled to deliver its decision on October 2.

Also Read: SEC’s Objection to Celsius Network’s Bankruptcy Plan Under Scrutiny

For now, Celsius’ redistribution plan appears to be on track, but the uncertainty looms large.