Celsius Network, a bankrupt cryptocurrency lender, is reportedly seeking more bids and exploring other buyers despite already having an offer on the table. During a recent hearing in Manhattan, Celsius attorney Chris Koenig stated that the company is open to better offers and that the lender’s official unsecured creditors committee met with a potential buyer just a few days ago to review an alternate proposal. Celsius also requested an extension from Judge Martin Glenn to submit a bankruptcy restructuring plan built around the NovaWulf deal; the judge agreed to give the company three additional weeks. In mid-February, NovaWulf Digital Management reached a deal with Celsius to buy its lending operations and help bring an end to its bankruptcy case. The plan has the support of the firm’s creditors committee and proposes a deal that would allow the crypto lender to begin returning crypto assets to customers in June. Celsius customers owed over $5,000 will have the opportunity to reduce their claim to that amount to join the class, and creditors owed at least $1,000 can opt-out of the class and receive a portion of yet-to-be-determined funds recovered for general customers. If Celsius chooses an alternate bidder, it intends to offer NovaWulf up to $20 million in breakup fees. Celsius filed for Chapter 11 bankruptcy in July 2020 in an effort to restructure and stabilize its business. As per the latest development, Celsius has established a wallet with $25 million of digital assets for its custodial account holders to withdraw. By Wednesday, custody account holders had withdrawn $17.7 million of these cryptocurrencies, and Celsius interim Chief Executive Chris Ferraro said another $3.5 million of withdrawals are in process. Earlier this month, Celsius said that it has opened withdrawals for select custodial account holders with certain limitations after securing approval from the US bankruptcy court.
