In a Rescue Bid, BnkToTheFuture, a Shareholder in Celsius, Suggests Bitcoin Investments and Restructuring
- In an effort to prevent Celsius from failing, the community investment protocol BnkToTheFuture put out three ideas on Thursday night.
- On Thursday, the cryptocurrency investing site BnkToTheFuture put out three recovery options to assist users impacted by the bankruptcy of cryptocurrency lender Celsius.
- As of Friday, the three proposals are up for community voting; after that, BnkToTheFuture anticipates holding a formal discussion with Celsius board members.
On Thursday, the cryptocurrency investing platform BnkToTheFuture put out three recovery options to assist users impacted by the bankruptcy of cryptocurrency lender Celsius. The Cayman Islands Monetary Authority has registered BnkToTheFuture as an excluded securities business, and it owns 5% of Celsius. According to the company’s post on Thursday,
We think that this enables us to convene a shareholder meeting as part of our statutory shareholder rights that legally cannot be ignored by the Celsius board.
In the first suggestion, Celsius is to be reorganized and launched, enabling depositors to profit from “any recovery through financial engineering.” This could be a reference to the creation of new tokens or increased fundraising.
The second suggestion is to create a group of the most influential Bitcoin (BTC) owners and ask them to “co-invest with the community” in order to generate a sizable sum of money for Celsius. According to BnkToTheFuture, it managed Celsius’s previous $20 million in funding, in which 1,039 investors took part.
According to BnkToTheFuture,
we finished a comparable disaster recovery service for Bitfinex in 2016.
Over $76 million was raised from investors as part of efforts to support the struggling cryptocurrency exchange at the time that had experienced a hack involving 120,000 bitcoin.
According to BnkToTheFuture, the third suggestion is to
create an operational plan that permits a new entity and team to rebuild and make depositors whole. However, the move would have “risks and full recovery of assets is not guaranteed.
As of Friday, a community vote on the three suggestions is underway, and BnkToTheFuture is slated to attend a formal meeting with Celsius board members.