BnkToTheFuture Co-Founder Proposes A Recovery Plan To Rescue Celsius

BnkToTheFuture and its co-founder Simon Dixon have offered to assist the embattled crypto lending firm.

Bishal Kumar Chanda2 min read
BnkToTheFuture Co-Founder Proposes A Recovery Plan To Rescue Celsius

Celsius’ lead investor BnkToTheFuture and co-founder Simon Dixon have offered to assist the embattled crypto lending firm. They plan on achieving it by deploying “financial innovation” similar to that used in 2016 to save crypto exchange Bitfinex.

BnkToTheFuture is a global online investment platform where users can invest in financial technology companies, funds, and other new products. Reportedly, the platform has over 85,000 qualified investors. Furthermore, Celsius launched an equity offering with BnkToTheFuture raising $20.46 million through 1,039 investors.

Simon Dixon Celsius recovery plan

Meanwhile, Dixon’s statement on Saturday did not reveal any specific details of the recovery plan. However, he says it would be similar to the one offered to Bitfinex after its 2016 hack.

“I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later.” said Dixon. “I believe that this can only be solved with a solution using financial innovation like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors.”

As a Celsius shareholder and lender, and due to the “short-term systemic impact on those that own Bitcoin,” Dixon is “keen to support Celsius with a recovery plan.” “It’s my position to offer solutions as we have the experience, licenses, and technology to do so,” he added.

The Bitfinex solution 

Dixon’s plan for Celsius takes inspiration from BnkToTheFuture’s solutions in August 2016 after the Bitfinex hack. Back then, Bitfinex announced losing approximately 120,000 Bitcoins in a cybersecurity breach, which was around $72 million of customers’ funds.

But rather than pursuing liquidation proceedings, Bitfinex devised an innovative recovery plan. It involved “promises to repay” in terms of BFX tokens representing the value of the money that Bitfinex lost in the hack.

Later that month, BnkToTheFuture improved the solution by allowing customers to convert their BFX tokens into Bitfinex equity. After around seven months, BnkToTheFuture reported victims recovering between 75% and 100% of their lost funds.

However, Dixon did not confirm whether his recovery plan could work the same with a token. Till now, we only know that it would involve similar innovative methods.

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