Wednesday, September 27, 2023

“LEAKED BIDS” – Binance and Galaxy Digital are among the undercover bidders for Celsius assets


At least five companies have submitted bids on Celsius Network’s crypto assets, including Binance, Bank To The Future and Galaxy Digital, according to leaked information shared by crypto blogger Tiffany Fong.

Fung, a Celsius follower who rose to fame after several exclusive interviews with Sam Bankman-Fried after their collapse, leaked information from documents she says she obtained on Dec. 3. 20 “Detail of Bids on Celsius Network Crypto Assets.”

In the Substack post, Fong explained that she initially refrained from leaking bids to avoid disrupting the bidding process but was asked to do so after recent comment from a lawyer representing Celsius.

“I have refrained from sharing bids publicly to avoid disrupting bidding procedures or negatively impacting customer recovery; however, at Celsius Network court hearing yesterday (23/24/1), Kirkland and Ellis attorneys Ross M. was persuasive,” Fung 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 digital asset investment firm NovaWulf.

According to Fong, the proposals from these crypto companies were submitted in November 2022, with Fong noting that they are “mostly abandoned.”

The blog mentioned that Binance has proposed an offer of $15 million for the assets, noting that $12 million will go to Celsius ownership and $3 million will be distributed to “migrant users on a pro-rata basis.”

In Binance’s alleged brief term paper, it said it intends to “acquire and transfer all liquid and illiquid cryptocurrencies” at fair market value to the Binance platform.

Galaxy Digital has proposed acquiring all of its illiquid and stored Ethereum (ETH) assets as something called an initial bidder for the distressed asset sale — for roughly $67 million.

Meanwhile, Bank To The Future’s bid stated in its transaction structure that all liquid crypto assets and collateral are to be returned to creditors in proportion, under Bank To The Future management.

in january. 26 tweets Bank of the Future CEO Simon Dickson has since confirmed that the contents of leaked bids relating to his company were accurate.

Fung noted in the blog post that she is “only aware of these five bids” on Celsius crypto assets.

It added that Novowolf’s pitch was “particularly interesting”, given its vague similarity to “the newly proposed restructuring plans for Celsius Network”.

In comments to Cointelegraph, Fung said she has had conversations with “several Celsius Network employees” and to her surprise, most of the employees “were not briefed on the bids.”

“Not even those in upper management” were aware of this information, she added.

Related: Celsius pools 30 potential bidders for its assets, withdrawal proposal approved

Fung said creditors and “even most employees” have been left in the dark about bids on crypto assets that investors have deposited with the platform.

Fung isn’t sure how “things will play out,” but he believes creditors deserve “more transparency” and a right to see bids on the assets we “deposited on the platform.”

Cointelegraph reached out for comments from Binance, Galaxy Digital, BnkToTheFuture, NovaWulf, and Cumberland DRW.