Attorney Denies Claims of Celsius Bidding Process being Abandoned

The Official Committee of Unsecured Creditors of Celsius has refuted claims that recent bids were not accepted for crypto lender assets.

Tiffany Fong, a crypto journalist, claimed that she was provided with documents detailing the bidding process for Celsius’ crypto assets.

Fong claims that Binance, Bank to the Future Galaxy Digital, Bank to the Future and Novawulf submitted bids for Celsius’ assets. However, the lender rejected them. According to Fong, Binance, Bank to the Future and Galaxy Digital had submitted bids for Celsius’ assets in December.

A Claim that is “Categorically False”

Gregory Pesce, White & Case LLP’s law firm representing Celsius’ Official Committee of Unsecured Creditors, responded to these claims during a recent Twitter space Reports of abandoned bids are “categorically false.”

The attorney stated that this leak will likely reduce creditor recoveries. “Regardless of whether the information is correct or not, it provides people who are still in the proceeding to whom we’re talking every day with information about what might be unfolding and that decreases the flexibility that committee has in dealing to these parties to achieve the best outcome.”

Pesce said that investigators are continuing to investigate the origin of the false claims. Pesce stated that there were “significant concerns” that an investor could have tried to manipulate the process for their own gain.

The way forward

The attorney also spoke out about the “recovery corp” plan that Celsius’s lawyers had proposed to repay creditors and exit bankruptcy. This plan will restructure the crypto lender to make it a publicly traded recovery company that can issue a debt token in order to repay creditors.

According to the lawyer, the plan is still in the works. The committee is “running down several other options,” including selling Celsius’ mining business, winding down the company, or “transferring crypto to a 3rd party.”

After suffering severe liquidity problems due to extreme market conditions, Celsius applied for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court of the Southern District of New York.

Shoba Pillay (an independent examiner) was appointed by the New York Bankruptcy Court to reveal that Celsius had misused customer funds for many years prior to its collapse.

By David Warsh

David Warsh is a leading expert in the field of cryptocurrency and blockchain technology. With over a decade of experience in the industry, he has a deep understanding of the intricacies of digital currencies and the potential they hold for revolutionizing various industries.