BnkToTheFuture Shares Three Proposals to Save Celsius From Bankruptcy

BnkToTheFuture has outlined three recovery plans to find a good outcome for people with stuck funds.

Bishal Kumar Chanda3 min read
BnkToTheFuture Shares Three Proposals to Save Celsius From Bankruptcy

Crypto investment platform and Celsius' lead investor BnkToTheFuture has outlined three recovery plans to save Celsius from bankruptcy. Furthermore, it aims to find a good outcome for users and shareholders with funds stuck on the platform.

On Thursday, BnkToTheFuture CEO Simon Dixon shared the three proposals on Twitter.

BnkToTheFuture CEO shares three recovery plans for Celsius

The first proposal calls for the restructuring and relaunching of Celsius. It would "allow depositors to benefit from any recovery through financial engineering." This could be a reference to issuing additional tokens or raising additional funds.

The second proposal suggests forming a "pool of the most influential whales in Bitcoin" and having them "co-invest with the community." The bid would raise significant capital for Celsius. BnkToTheFuture added it had handled the previous fundraising for Celsius with 1,039 investors, raising over $20 million.

BnkToTheFuture explained, "We completed a similar disaster recovery offering for Bitfinex in 2016." That effort raised over $76 million to help the then troubled Bitfinex, which lost 120,000 Bitcoins to a hack.

The third proposal calls for forming "an operational plan that allows a new entity and team to rebuild and make depositors whole." However, according to BnkToTheFuture, the move involves "risks and full recovery of funds is not guaranteed."

As of Friday, a community vote for the three proposals is underway. Following this, BnkToTheFuture is supposed to hold a shareholder meeting that "legally cannot be ignored by the Celsius board:"

Also, BnkToTheFuture suggested that after submitting these proposals, it is looking to "apply pressure" on the firm. With its lack of a specific plan of action, BnkToTheFuture is "worried that time was running out."

On the same day, Dixon echoed similar sentiments in a Digital Assets News Interview. "You have to move really fast, because the longer you go on, the more FUD comes out, bad PR comes out, more predatory offers come out, the more the community stops believing in what they originally believed in," he explained.

On June 12, Celsius announced freezing user withdrawals from the platform, citing "extreme market conditions." As a result, users fear they might never get their funds back if Celsius goes bankrupt.

Does Celsius Have Its Own Solution?

In a Friday blog post, Celsius said it is working as fast as possible to stabilize its liquidity problems. The crypto lender aims to be "positioned to share more information with the community."

While not revealing many details, Celsius said it is currently exploring options to protect its assets. It includes pursuing strategic transactions as well as a restructuring of their liabilities, among others.

The blog post read, "These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines,"

FTX Walked Away From Celsius Over Bad Financials

On Thursday, reports surfaced that Sam Bankman-Fried's crypto exchange FTX walked away from a deal to buy Celsius Network. Reportedly, it was after FTX found a $2 billion hole in the company's finances.

According to two unnamed sources close to the matter, FTX earlier entered talks with Celsius to either provide financial support or outright acquire the firm. However, apart from the $2 billion discrepancy, dealing with a Celsius account wasn't easy.

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