At least five companies are making bids on 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 famous follower of Celsius developments after several exclusive interviews with Sam Bankman-Fried after the collapse, has leaked information from a document that he says he obtained on December 20 “withdrawing bids on Celsius Network crypto assets.”
In Substack’s post, Fong explained that he initially did not release the offer in order not to disrupt the bidding process but was prompted after recent comments from the lawyer representing Celsius.
“I refrain from showing the offer publicly in order to disrupt the bidding procedure or negatively impacting customer recovery; However, in yesterday’s Celsius Network court hearing (1/24/23), Kirkland & Ellis lawyer Ross M. Kwasteniet stated that the offer ‘has not been forced,” Fong explained.
Among the bidders revealed by Fong are crypto exchange Binance, online investment platform Bank To The Future, digital asset investment manager Galaxy Digital, crypto trading firm Cumberland DRW and digital asset investment firm NovaWulf.
According to Fong, the proposals of the crypto company were submitted in November 2022, with Fong noting that they were “for the most part, abandoned.”
The blog stated that Binance proposed a $15 million bid for the asset, stating that $12 million would go to the Celsius estate and $3 million would be distributed to “migrating users on a pro-rata basis.”
In Binance’s Summary Term Sheet, it said it intends to “acquire and transfer all liquid and specific cryptos” of equal market value to the Binance platform.
Galaxy Digital is proposing to acquire all illiquid and staked Ethereum (ETH) assets as “designed stalking horse bidders” – the name given to early bidders to sell distressed assets – for an estimated $67 million.
Meanwhile, Bank To The Future’s offer states in the structure of the transaction that all liquid crypto assets and collateral will return to creditors pro rata, according to Bank To The Future’s management.
In a January 26 tweet, Bank To The Future CEO Simon Dixon has confirmed that the content of the leaked offer relating to the company is accurate.
I can confirm it is a true reflection of the term sheet @BankToTheFuture sent to give you all your coins left free of charge & 100% illiquid assets. https://t.co/MrYGvoB9eB
— Simon Dixon (@SimonDixonTwitt) January 26, 2023
Fong noted in a blog post that he “only knows of these five deals” in the Celsius crypto asset.
He added that Novawulf’s offer is “particularly interesting,” as it bears a vague resemblance to “Celsius Network’s proposed new restructuring plan.”
In comments to Cointelegraph, Fong said that he had talked to “several Celsius Network employees” and surprisingly, most employees “didn’t even know about the offer.”
He added that “not even upper-level management,” was aware of the information.
related: Celsius gathered 30 potential bidders for the assets, the withdrawal motion was approved
Fong said lenders and “even most employees” have been left in the dark about crypto asset deals that investors deposit on the platform.
Fong is not sure how “things will unfold,” but thinks that creditors deserve “more transparency” and have the right to see the offer of assets that “we deposit into the platform.”
Cointelegraph has received comments from Binance, Galaxy Digital, BnkToTheFuture, NovaWulf and Cumberland DRW.