On Thursday, bankrupt crypto lender Celsius Network LLC chose Fahrenheit’s proposal to manage a new firm its creditors own to exit bankruptcy.
Celsius said Fahrenheit, a coalition including blockchain-based venture capital firm Arrington Capital, will fund, manage, and run NewCo.
“Under the Plan, Celsius’ account holders will own 100% of the new equity in NewCo,” it said, adding that creditors will majority-appoint NewCo’s board.
New Jersey-based Celsius recently unveiled a backup proposal with the Blockchain Recovery Investment Consortium (BRIC), a holding company affiliated with the Winklevoss-owned Gemini Trust.
Celsius was one of several crypto lenders that failed during COVID-19.
The company auctioned its crypto lending and bitcoin mining businesses to avoid insolvency on April 22.
It delayed NovaWulf’s consideration of Fahrenheit and BRIC, a holding business owned by the Winklevoss-owned Gemini Trust.