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.
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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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
