Investment Firm Seeks to Take Control of Celsius Network
Celsius Network, a crypto lending company that declared bankruptcy in July, has proposed a restructuring plan for the sale of its assets to NovaWulf Digital Management, an investment firm founded in 2021 by former Wall Street executives.
As per court documents filed on Wednesday, smaller Celsius creditors with less than $5,000 in their accounts will receive a significant portion of their funds, while larger creditors will be offered tokenized shares in a new company that will trade on Provenance Blockchain through a registered broker-dealer, and also files public disclosure documents.
The restructuring plan also includes the following:
- Injecting $45 million to $55 million into the business.
- Adding new divisions like debit cards.
- Factoring.
- Trade finance.
- Private wealth services.
The new entity will be managed by NovaWulf, with managing partner Jason New, who helped run distressed and special situations teams at Blackstone’s GSO Capital Partners, at the helm. Other executives from King Street and Beowulf Energy will also join the team.
READ MORE: Bitcoin: Bloomberg Analyst Shares Warning about Massive Threat
According to a recent court-appointed examiner’s report, Celsius Network’s bankruptcy was due to several operational failures, dishonest public statements, market manipulation, and Ponzi-like recycling of client assets.
Nine takeover bids were received, and the official committee of Celsius’s unsecured creditors has filed a separate lawsuit to recover millions of dollars that it alleges were fraudulently transferred by the company’s founder and former CEO, Alex Mashinsky, his wife, and other senior executives.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
