DailyCoin
Published Feb 01, 2023 11:00AM ET
Updated Feb 01, 2023 12:30PM ET
Celsius Creditors Committee Dismisses Claims that Bids Were Rejected for Celsius Assets
In a Twitter Space yesterday, the counsel representing Celsius’ official creditor committee debunked rumors that bids for the crypto lender had been rejected. The “Celsius UCC Town Hall” witnessed Celsius attorneys Gregory Pesce and Aaron Colodny from White & Case dislodge the claims.
.tweet-container,.twitter-tweet.twitter-tweet-rendered,blockquote.twitter-tweet{min-height:261px}.tweet-container{position:relative}blockquote.twitter-tweet{display:flex;max-width:550px;margin-top:10px;margin-bottom:10px}blockquote.twitter-tweet p{font:20px -apple-system,BlinkMacSystemFont,"Segoe UI",Helvetica,Arial,sans-serif}.tweet-container div:first-child{ position:absolute!Important }.tweet-container div:last-child{ position:relative!Important }
https://t.co/hbJ5GJchZCReports about the rejected bid surfaced via a Substack post last week by a crypto blogger identified as Tiffany Fong. Fong claimed about five organizations had expressed interest in acquiring Celsius’ cryptocurrency assets. According to her, the firms are Galaxy Digital, Binance, NovaWulf, Cumberland DRW, and Bank To The Future.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) January 31, 2023
To establish the rejection of the bids, Fong pointed to a Celsius Counsel statement that described them as “not compelling.” In most cases, the bids were abandoned, according to the blogger.
I initially refrained from sharing the bids publicly to avoid disrupting the bidding procedures, but since Kirkland & Ellis proclaimed the bids “have not been compelling,” I'd love to hear what the community thinks. https://t.co/2TzdW23MBzh2 Insights into the Condition of the Rumored Bids /h2— Tiffany Fong (@TiffanyFong_) January 26, 2023
One of the counsels during the space, Gregory Pesce, argued that the reports were false and the bids were not rejected. However, Pesce refused to confirm if the firms, as reported by Tiffany Fong, bid for the assets. The attorney described the reports as “regrettable” because they would reduce the committee’s position to a weaker state during the negotiation process.
Additionally, Pesce explained how the committee intended to make the best out of every bid to maximize its chances of acquiring enough funds from the auction process. Similarly, the attorney established that Celsius has been transparent with the auction proceedings.
Pesce disclosed that the committee and Celsius had provided adequate information for investors to understand where they stand. The stakeholders of the crypto lender pursued the US bankruptcy court to have a stake in claiming some of the assets belonging to Celsius, according to a report from Bloomberg.
Other than these claims, Celsius has experienced additional troubles lately.
h2 Timeline of Recent Issues Involving Celsius/h2A recent Reuters report established that the crypto lender used investors’ money and deposits to push up its token, CEL. The manipulation reportedly aided top executives like Alex Mashinsky and Daniel Leon to make fortunes from token sales.
In the publication, Reuters cited a US bankruptcy examiner report released yesterday. The investigation revealed that Celsius carried out the act as early as 2020, spending about $558 million to buy the token.
Additionally, the report stated that Tether, Three Arrows Capital, and Alameda Research might exceed their credit limits with the bankrupt lender. According to the report, Tether reportedly had over $2 billion in exposure to Celsius.
In another development last October, US Bankruptcy Judge Martin Glenn ruled against Celsius stakeholders to constitute a committee of equity holders. The ruling compelled Celsius’s preferred equity holders to hire their counsel during the bankruptcy proceedings.
h2 On the Flipside/h2Celsius owes its 100,000 creditors around $4.7 billion. To reorganize and exit bankruptcy, the crypto lender is considering issuing new digital-asset tokens to repay creditors. The sale of the assets might also help the firm improve its financial situation.
You may also like:
Court Approves Celsius Network’s Ownership of $4.2 Billion in Customer Funds
US Court Approves Proof-of-Claim Deadline For Celsius Network Victims
See original on DailyCoin
Written By: DailyCoin
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.