At least five companies have made offers for the Celsius Network crypto assets, including Binance, Bank To The Future and Galaxy Digital, according to leaked information shared by crypto blogger Tiffany Fong.
Fong, a follower of Celsius developments who rose to fame after several exclusives interviews with Sam Bankman-Fried following its collapse, she leaked information from documents she says were obtained on Dec. 20 "detailing deals in Celsius Network's crypto assets."
In a Substack post, Fong explained which initially refrained from filtering bids to avoid disrupting the bidding process, but was asked to do so after a recent comment from a lawyer representing Celsius.
"I have refrained from sharing bids publicly to avoid disrupting bidding procedures or negatively impacting customer recoveries; however, at Celsius Network's court hearing yesterday (1/24/23), counsel for Kirkland & Ellis , Ross M. Kwasteniet, proclaimed that the offers "have not been convincing," Fong explained.
Among the bidders revealed by Fong are cryptocurrency exchange Binance, online investment platform Bank To The Future, digital asset investment manager Galaxy Digital, cryptocurrency trading firm Cumberland DRW, and asset investment firm digital NovaWulf.
According to Fong, the proposals from these crypto companies were submitted in November 2022, with Fong noting that they are โfor the most part abandoned.โ
The blog stated that Binance proposed a $15 million offer for the assets, stating that $12 million would go to the Celsius property and $3 million would be distributed to โmigrated users on a pro-rata basis.โ
In Binance's purported summary term sheet, it said it intends to "acquire and transfer all liquid and certain illiquid cryptocurrencies" at fair market value to Binance's platform.
Galaxy Digital proposed to acquire all illiquid and staked Ethereum (ETH) assets as a "designated stalking horse bidder"โa name given to the initial bidder for the sale of distressed assetsโin the amount of approximately $67 million.
Meanwhile, Bank To The Future's offer stated in its transaction structure that all liquid crypto assets and collateral would be returned to creditors on a pro-rata basis, under Bank To The Future's management.
In a January 26 tweet, Bank To The Future CEO Simon Dixon has since confirmed that the content of the leaked offers related to his company was accurate.
I can confirm that it is a true reflection of the term sheet @BankToTheFuture sent to give everyone all coins left free of charge and 100% of illiquid assets. https://t.co/MrYGvoB9eB
โSimon Dixon (@SimonDixonTwitt) January 26, 2023
Fong noted in the blog post that he is "only aware of these five offerings" in Celsius crypto assets.
He added that Novawulf's offer was "particularly interesting" because it bears a vague resemblance to Celsius Network's "recently proposed restructuring plans."
In comments to Cointelegraph, Fong said that he has had conversations with โmultiple Celsius Network employeesโ and, to his surprise, most of the employees โwere not even aware of the offers.โ
He added that "not even those in senior management" were aware of this information.
Related: Celsius accumulates 30 possible bidders for its assets, the withdrawal motion is approved
Fong said creditors and "even most employees" have been left in the dark about crypto asset offerings that investors deposited on the platform.
Fong isn't sure how "things will play out," but he thinks that creditors deserve "more transparency" and have the right to see the offers on the assets that "we deposit on the platform".
Cointelegraph solicited comment from Binance, Galaxy Digital, BnkToTheFuture, NovaWulf, and Cumberland DRW.
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