celsius customers

Celsius Network chooses NovaWulf bid for bankruptcy exit

Feb 15 (Reuters) – Crypto lender Celsius Network will seek to exit bankruptcy under the guidance of asset manager NovaWulf Digital Management, which will take over the operations of a new company that will be owned by Celsius customers, the company said at a court hearing in Manhattan on Wednesday.

The proposed deal with NovaWulf should allow Celsius to exit Chapter 11 and begin returning crypto assets to customers in June, Celsius attorney Ross Kwasteniet said at Wednesday’s hearing.

Celsius selected NovaWulf’s bid out of more than 130 proposals received, saying that NovaWulf was the only finalist that intended to maintain long-term control over Celsius’ harder-to-liquidate assets, like its loan portfolio and bitcoin mining business.

Those assets would be owned by Celsius creditors and managed by NovaWulf under a profit-sharing agreement if U.S. Bankruptcy Judge Martin Glenn, who is overseeing Celsius’ Chapter 11 process, and creditors sign off on the deal.

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Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing customers with the promise of high interest rates on their cryptocurrency deposits and the ability to borrow against their crypto assets. But many companies in the highly interconnected sector went bankrupt

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Celsius Customers Feel Betrayed As Bankruptcy Swallows Assets. Here’s How To Manage Crypto Risk

Celsius Customers Feel Betrayed As Bankruptcy Swallows Assets. Here’s How To Manage Crypto Risk


  • Celsius customers are hoping heartfelt letters will convince the bankruptcy courts to return their money
  • Crypto platforms do not have FDIC insurance or the other protections offered by bank accounts
  • Always read the terms and conditions before you commit money to a crypto platform and only invest money you can afford to lose

Celsius, the crypto lending platform that collapsed over the summer, owes $4.7 billion, according to its bankruptcy filing. That’s a lot of money. For some retail investors, it was their life savings. For others, it was money they wanted to put towards a house deposit or use to fund their retirement. They trusted Celsius and believed it was a safe alternative to a savings account.

Then Celsius froze withdrawals in June, and that trust was destroyed. Many customers are grappling with the possibility that they could lose their money altogether. Celsius owes about $1.2 billion more than it holds, and retail investors will be low down on the pecking order when it comes to recovering funds. It’s now in the hands of the bankruptcy courts who need to decide who gets what.

Celsius customers fight for their life savings

One big issue for Celsius

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