BnkToTheFuture unveils 3 proposals to rescue Celsius from oblivion

BnkToTheFuture unveils 3 proposals to rescue Celsius from oblivion

BnkToTheFuture's three proposals include two different ways to restructure and relaunch the firm, or an option to co-invest in the firm with a bunch of Bitcoin whales.

Celsius’ lead investor BnkToTheFuture has outlined three proposals to save Celsius from bankruptcy while finding a good outcome for shareholders and depositors with funds stuck on the platform.

Shared on Twitter by BnkToTheFuture CEO Simon Dixon on June 30, the three distinct proposals include either two options of restructuring and relaunching Celsius, or potentially co-investing in the platform alongside wealthy Bitcoin Whales.

  • “Proposal #1: A restructuring to relaunch Celsius and allow depositors to benefit from any recovery through financial engineering.
  • Proposal #2: A pool of the most influential whales in Bitcoin to co-invest with the community.
  • Proposal #3: An operational plan that allows a new entity and team to rebuild and make depositors whole.”

Dixon previously referred to “financial innovation” being needed to be applied to Celsius, similar to the issuance of equity debt tokens like in the case of Bitfinex in 2016, which were designed to represent $1 of debt per token.

“We believe all attempts should be made to make depositors whole in order to maintain shareholder value,” the team wrote, adding it will be calling for a shareholder meeting that “legally cannot be ignored by the Celsius board.”

“Bnk To The Future Capital SPC holds over 5% of Celsius shares and therefore we believe that this allows us to call a shareholder meeting as part of our statutory shareholder rights that legally cannot be ignored by the Celsius board.”

BnkToTheFuture also suggested that after first submitting these proposals to Celsius and its advisors, is it now looking to “apply pressure” to the firm after getting “worried that time was running out” 

with its lack of a distinct plan of action. These sentiments were also echoed by Dixon in a Digital Assets News Interview on the same day: “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.”Celsius’ users have been unable to withdraw assets from the platform since June 13 amid the firm’s ongoing liquidity issues, and

there are fears that users may never get their funds back if the company were to go bankrupt.

Celsius may have its own solution

In a blog post from July 1, Celsius stated that it is working as fast as it can to stabilize its liquidity problems so that it can be “positioned to share more information with the community.”

While the firm did not reveal much about what this entails, Celsius stated that it is exploring options to protect its assets such as pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues.”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,” the blog post read.

FTX walked away from Celsius deal over bad financials

Reports surfaced on June 30 that Sam Bankman-Fried’s crypto exchange FTX recently walked away from a deal to purchase Celsius after finding a $2 billion hole in the company’s finances.

According to two unnamed sources close to the matter, FTX had entered talks with Celsius to either provide financial support or acquire the firm outright, however apart from having $2 billion an account for Celsius was said to be difficult to deal with.- cointelegraph

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