According to leaked information shared by crypto blogger Tiffany Fong, at least five firms bid on Celsius Network’s crypto assets, including Binance, Bank To The Future, and Galaxy Digital.
Fong, a Celsius follower who rose to prominence after several exclusive interviews with Sam Bankman-Fried following the company’s demise, has leaked information from documents she claims were obtained on December 20 “detailing the bids on Celsius Network’s crypto assets.”
Fong explained in a Substack post that she initially avoided leaking the bids to avoid disrupting the bidding process, but was compelled to do so after recent comments from a lawyer representing Celsius.
“I refrained from sharing the bids publicly to avoid disrupting the bidding procedures or negatively impacting customer recoveries; however, in yesterday’s Celsius Network court hearing (1/24/23), Kirkland & Ellis attorney Ross M. Kwasteniet proclaimed the bids ‘have not been compelling,” Fong explained.
Crypto exchange Binance, online investment platform Bank To The Future, digital asset investment manager Galaxy Digital, crypto trading company Cumberland DRW, and digital asset investment firm NovaWulf are among the bidders revealed by Fong.
According to Fong, these crypto firms’ proposals were submitted in November 2022, and they are “for the most part, abandoned.”
According to the blog, Binance proposed a $15 million bid for the assets, with $12 million going to the Celsius estate and $3 million going to “migrated users on a pro-rata basis.”
Binance purportedly stated in its Summary Term Sheet that it intends to “acquire and transfer all liquid and certain illiquid crypto” at fair market value to its platform.
Galaxy Digital proposed to pay approximately $67 million for all illiquid and staked Ethereum assets as a “designed stalking horse bidder” — the name given to the initial bidder for the sale of distressed assets.
Meanwhile, the transaction structure of Bank To The Future’s bid stated that all liquid crypto assets and collateral would be returned to creditors pro rata, under the management of Bank To The Future.
Simon Dixon, CEO of Bank To The Future, confirmed the contents of the leaked bids relating to his company in a tweet on January 26.
In her blog post, Fong stated that she is “only aware of these five bids” on Celsius’ crypto assets.
She went on to say that Novawulf’s bid was “particularly interesting” because it resembled “Celsius Network’s newly proposed restructuring plans.”
Fong told Cointelegraph that she spoke with “multiple Celsius Network employees” and that, to her surprise, most employees “were not even made privy to the bids.”
“Not even those in upper-level management,” she added, were aware of this information.
Fong claimed that creditors and “even most employees” were unaware of the bids on crypto assets that investors had deposited on the platform.
Fong is unsure how “things will unfold,” but believes creditors deserve “more transparency” and the right to see bids on assets “we deposited onto the platform.”
Binance, Galaxy Digital, BnkToTheFuture, NovaWulf, and Cumberland DRW have all responded to Cointelegraph’s request for comment.
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