Bankrupt lending platform Celsius Network LLC has announced that it has selected a proposal from Fahrenheit as the winning bid to bail the company out of bankruptcy, according to a report by Reuters.
Celsius, which filed for Chapter 11 protection in July, sought a buyer to manage its cryptocurrency lending and bitcoin mining business. The chosen consortium, Fahrenheit, includes Arrington Capital, a blockchain-based venture capital firm. In addition to the consortium acquiring the company, a new board of directors, mostly appointed by creditors, will oversee the new company formed as a result of the purchase.
Celsius also revealed that he had secured a relief offer from the Blockchain Recovery Investment Consortium (BRIC), a holding company affiliated with Gemini Trust, owned by the Winklevoss twins, guaranteeing an alternative option in case the deal with Fahrenheit fails.
According to Celsius, Fahrenheit will provide the capital, management expertise and technology needed to navigate bankruptcy. The selection of the consortium indicates a potential positive outcome for Celsius and its creditors, allowing the business to move forward under new management and ownership.