Uncovering the Secret Bids: Binance, Galaxy Digital, and Others in the Race to Acquire Celsius's Assets

Binance, Bank to the Future, NovaWulf, Cumberland/DRW, and Galaxy Digital have reportedly submitted bids to purchase the assets of Celsius, a leading crypto lending platform. According to crypto blogger Tiffany Fong, the bids were submitted in secret in November 2022.

Timeline of Celsius

The state of New York and its attorney general Leticia James are suing former crypto lending network Celsius for allegedly engaging in fraud and misusing customer funds. New York Comes Down Hard on Celsius The sentiment is that FTX wasn't the only company to use traders' money for personal gains this year.

Celsius recently released an update of the coins currently available in January 2023. According to it, there was almost no change in the Celsius network between November and December.

Senator Elizabeth Warren (D-Mass.) has warned that the ongoing volatility in the cryptocurrency space will persist unless there are tougher regulations in place to protect investors.

The defunct crypto lender Celsius is exploring the possibility of creating a debt token to repay creditors. The plan would need to be approved by regulators, but if approved by the trustee and financial authorities, the debt token would be called an “asset share token (AST).

Two claimants called out former Celsius CEO Alex Mashinsky in motions, claiming he misled users, while all suggested that the platform's terms of use left assets in their control.

According to a report by Bloomberg, the now-defunct cryptocurrency lender Celsius is considering the possibility of issuing a new cryptocurrency token as part of its restructuring efforts. This would enable the company to obtain capital and pay back its debtors.

The legal team of the bankrupt cryptocurrency lending firm Celsius Network LLC announced on Tuesday that the company is working on reinventing itself as a new, publicly traded “recovery corporation,” adding that it may issue a token to repay its creditors. According to reports by Bloomberg and some additional information provided by CoinDesk, Celsius's legal team said that the crypto lender had devised a new plan to reinvent itself as a new, publicly traded “recovery corporation” to exit bankruptcy proceedings.

Celsius is planning to come back after its collapse in mid-July last year. Part of the recovery processes will entail the company complying with SEC regulations in the US and going public, offering tokenized shares that pay dividends.

A shadow of its high point of more than $8 in June 2021, Celsius Network (CRYPTO: CEL) has not been an attractive buy for most crypto investors. As of Tuesday evening, the crypto was down 6.99% at $0.5922.

Lawyers for Celsius Network said Tuesday that the bankrupt crypto lender is planning to reinvent itself as a new, publicly traded “recovery corporation” in order to exit the bankruptcy process – something they said could happen in “months.”