BnkToTheFuture reveals 3 proposals to save Celsius

BnkToTheFuture reveals 3 proposals to save Celsius

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

Shared on Twitter by BnkToTheFuture CEO Simon Dixon on Thursday, the three separate proposals include two options of restructuring and relaunching Celsius or potentially co-investing in the platform alongside bitcoin (BTC) rich whales.

“Proposition #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 bitcoin whales to co-invest with the community.”

“Proposition #3: An operating plan that allows a new entity and team to rebuild and get depositors back on their feet.”

Dixon previously referred to the “financial innovation” that needs to be applied to Celsius, similar to issuing equity debt tokens as in the case of Bitfinex in 2016.which were designed to represent $1.00 of debt per token.

“We believe that every attempt should be made to get depositors back on their feet in order to maintain shareholder value,” the team wrote, adding that it will convene a shareholders’ meeting that “legally cannot be overridden by the board of directors.” Celsius:”

“Bnk To The Future Capital SPC owns over 5% of the shares of Celsius and therefore we believe this allows us to call a shareholders meeting as part of our statutory shareholder rights which the Celsius board is legally unable to hold. to ignore.”

BnkToTheFuture also suggested that after first presenting these proposals to Celsius and his advisers, he is now looking to “apply pressure” on the firm after “worrying time was running out” with its lack of a distinct action plan. Dixon also echoed these sentiments in an interview with Digital Assets News on the same day:

“You have to move very fast, because the more time goes by, the more FUD comes out, the more bad PR comes out, the more abusive offers come out, the more the community stops believing in what it originally believed.”

Celsius users cannot withdraw assets from the platform since June 13 due to the continuing liquidity problems of the company. In the meantime, it is feared that users will never get their funds back if the company goes bankrupt.

Celsius might have its own solution

In a blog post on Friday, Celsius stated that he is working as fast as he can to stabilize his liquidity problems so he can be “in a position to share more information with the community.”

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Although the company did not reveal much about what this implies, 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 comprehensive scans are complex and time consuming, but we want the community to know that our teams are working with experts from many different disciplines,” it read. in the blog post.

FTX abandoned the deal with Celsius due to poor finances

Reports emerged Thursday that Sam Bankman-Fried’s crypto exchange FTX recently backed out of a deal to buy Celsius after finding a $2 billion hole in the firm’s finances.

According to two anonymous sources close to the matter, FTX had been in talks with Celsius to provide financial support or acquire the company outright. However, in addition to having $2 billion, Celsius’s accounts were said to be difficult to manage.

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