Crypto Lender Celsius Updates Bankruptcy Plan After Fahrenheit Deal

Defunct crypto lender Celsius has filed an updated bankruptcy plan to reflect a successful bid for assets by the Fahrenheit consortium.

Fahrenheit, a consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, was announced as successful bidder in May, ousting an attempt by NovaWulf to claim the company whose assets were previously valued at around $2 billion.

The plan, filed early Thursday, must be agreed by the New York bankruptcy court overseeing the wind-up, and is already set to see creditor pushback.

“This proposed treatment violates every consumer lending law out there,” tweeted David Adler of law firm McCarter & English, saying that the group of borrowers he represents in the case will oppose the plan because Celsius won’t return their collateral.

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, Adler added, saying that his clients had been ignored and “treat[ed] like mushrooms for the past seven weeks.”

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.

Read more: Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius