Fahrenheit Consortium Acquires Celsius Network Assets for $2 Billion
The Fahrenheit consortium has emerged victorious in the auction for the assets of the bankrupt crypto lender Celsius Network. The group, comprising crypto investors and companies, submitted a winning bid of $2 billion, which covered Celsius' loan portfolio, staked crypto, mining operations, and other investments. Key members of the consortium include US Bitcoin Corp and Arrington Capital.
Celsius Network, once a leading crypto lending platform with over 1 million users and $20 billion in assets under management, filed for Chapter 11 bankruptcy protection in April. The platform faced legal challenges after the SEC accused it of offering unregistered securities and violating investor protection laws. Despite denying the allegations, Celsius was unable to secure sufficient funding to continue operations.
Fahrenheit plans to utilize Celsius' assets to launch a new decentralized lending platform, promising better rates and transparency for borrowers and lenders. The consortium also committed to honoring all existing contracts and obligations with Celsius' customers and partners. Fahrenheit's bid surpassed another offer from NovaWulf, which proposed $1.8 billion for the assets. The Blockchain Recovery Investment Consortium was selected as a backup bidder in case Fahrenheit fails to finalize the deal.