Celsius, a company with significant consumer debt exceeding $4 billion, filed for Chapter 11 bankruptcy in July 2022 and has been under investigation for several months.
Lending companies for cryptocurrencies were particularly impacted by the collapse of the 2022 cryptocurrency market, with Celsius Network, Voyager, and Three Arrows Capital among the most affected companies.
Recent reports indicate that the auction for Celsius is scheduled to take place on Tuesday, but there have been some developments. Two additional parties, Fahrenheit and the Blockchain Recovery Investment Committee, are expected to participate in the three-way auction.
Fahrenheit is backed by venture capitalist Michael Arrington, while the Blockchain Recovery Investment Committee is supported by Gemini Trust.
Celsius auction remains crucial for its 600,000 creditors
The auction outcome is crucial, as the payment of 600,000 creditors hinges on it. The auction is set to begin at 2 p.m. on Tuesday in Manhattan, and the winning party remains uncertain.
Customers and creditors are eager for the auction to begin, as it is a significant step towards recovering their funds. The bankruptcy process has already depleted millions of dollars from Celsius’s remaining assets.
It is unclear which party has the advantage in the bidding process, although Fahrenheit’s consortium may benefit from including industry giant Coinbase.
If Celsius emerges from bankruptcy, it will mark another significant milestone for the cryptocurrency industry as it strives to recover from a tumultuous year. The industry saw several high-profile companies collapse, and it was revealed that some once-respected industry leaders had engaged in fraudulent activities.