Bankrupt Crypto Lender Celsius to Poll Customers on New User-Owned Company Plan: Report

A poll is on the horizon. Celsius is planning to pull customers on launching a new user owned company. The bankrupt crypto lender has received permission from the court to start surveying account holders on its new proposal. This new plan is to start fresh under new management, led by investment firm Arrington Capital with customers being repaid in part through equity in the new company, Wendy. I'm passing this off to you because I believe that you should be receiving a request to participate in this poll. You were a customer of Celsius, tell us how you'll be voting. How many exchanges have I used in 20 20 before or whatever that have filed for bankruptcy. Almost all of them, I can name pretty much all of them. Um I don't know what I'm gonna do. I just uh I personally don't care anymore. Any time an exchange goes under, one of my first exchanges that went under was crypt. I lost quite a bit of money there relative to what I was making back in, I think it was 2018. Um So if I lose money on an exchange, then I lose money on an exchange and I'm just, I don't expect anything good to come of it. I've also been on so many different exchanges that implemented KYC and I forgot to take my coins off of those and it caused a lot of issues as well. So I lost money. So I'm very, um, infamous at losing money, um, in crypto. But, uh, you just, you know, you just open 100 times leverage long and you make it all back in one trade. Just kidding. Don't do that. That's not financial advice. Well, well, maybe Wendy, let me give you more information. You could tell us how you, how, what you think of it, at least, maybe not, how you would vote. So they're planning to redistribute $2 billion of Bitcoin and Ether. Um, the sell tokens are not part of this because the sec and the court see sell tokens as so in a regular bankruptcy, this would go away and there would be some kind of partial ownership along with this. The judge is saying that the new company needs to give documents that educate customers on the volatility of the industry and the pros and cons of mining. Um, unfortunately, I think that, um, I think that those disclosures are really good, but unfortunately, I feel like our regulatory landscape in the United States has done such a horrible job of actually protecting retail. So I don't necessarily know if it's gonna make any difference, um, or not. I feel like people that were using those types of platforms, understand how volatile crypto assets are now. And, um, I don't really have anything else much to say about it. I think that there's a lot of paperwork that's being done. There's a lot of attorneys fees and a lot of money was heavily wasted and it's just a very unfortunate thing that happens in bankruptcy, not just in crypto though. People don't understand that any company can file for bankruptcy. And there's always people that are getting hit hard with that. Um And I feel like the bankruptcy for crypto is going to be a lot different than a lot of these traditional industries that file for bankruptcy. I have a really good friend and he works for a collection agency at a law firm and their top creditor is China. And so they do a lot of collections on all that stuff. And I've talked to him about kind of what's happening in the crypto landscape and he's just, his industry is very, very, very, very excited to learn how to um read Blockchain and to start going after people, which is what we're gonna be seeing coming soon. Well, it will this story, I mean, I have to say, first of all, credit to Michael Arrington for having a bit of humor in the situation and naming it Fahrenheit. So that's firstly, it should be stated, right? Celsius Fahrenheit. Get it cool. All right, that's good. Second of all I want, I want to throw this to you. Will I mean, I think the subtext of this article is basically like Celsius had a huge mining operation, right? And the question is like, how do we proceed with that line of business? And whether or not that becomes sort of the thing that this new entity is known for rather than these sort of shady lending practices that led to the downfall of Celsius and others. Like, talk to me about sort of that mining subtext that I think is uh in this story. Yeah, this is one of those stories. I wish I've been paying attention to a little bit more because it's, it was like within all, like the filth and mud of like FTX and all the other stories that collapsed over last year and Celsius was one, I just didn't delve into the things we do know about Celsius is they did have a lot of assets like Bitcoin and Ether on their books and they did liquidate a lot of their tokens into those two tokens themselves. I think it's like 2 billion dollars are on the books and they need to distribute all those two different customers. But also they need to uh get this mining side up again, right? And they had well over 80,000 Bitcoin mining A six, they had lots of contracts all over the place like good energy contracts. Those were taken over by a conglomerate with Fahrenheit, part of that conglomerate is Harrington capital. But another part of it is US Bitcoin core, which is pretty large big coin miner out there that is looking towards a merger with Hut Eight A Canadian company and with this possible merger of us Bitcoin and Hut Eight. And then the possibility of Fahrenheit getting all these Bitcoin miners looks like they have done that they could become potentially one of the biggest Bitcoin miners in North America. So like within the ashes of this whole story, we're seeing something else rise up, which is like, you know, one of the largest Bitcoin miners in North America, that's, that's something to sniff at. Um It's gonna be a pretty big deal going to next year. Um Jen. Well, I guess will with that information, how would you vote if you were a creditor in this? It sounds like there could potentially be like a pretty good upside if they, if they voted yes and move forward with this and, and Celsius. But due to that merger, it becomes like one of the biggest miners in the world. Yeah, I mean, I don't know exactly all the details of this, right. Like there could be some stuff that's really awesome for everyone involved. I'd have to look at it a little bit more in depth, but from the Bitcoin mining side, this does look like a pretty ingenious scheme out of what's happening right now. So I could just delve into a little bit more to understand what's going to happen with all the other assets. There's $2 billion in Bitcoin either that needs to be distributed to people. That's a lot. I do know that they're promising like 85 cents to the dollar to be returned, uh for the whole process. So that's pretty good in terms of chapter 11 cases. The my only concern is is that we're gonna get super far in the case and then the SEC or another regulatory body is gonna step in and say, no, you can't do that because they did do that with Voyager. And so people ended up getting a lot less because I believe that they were affiliated with Binance us. So who knows what's gonna happen? Me personally, if I get anything back, great. If I don't get anything back. Great. I'm just kind of, you know, I understand it's crypto stuff happens.