TechFlow news: The cryptocurrency lending platform Celsius has submitted an updated bankruptcy plan, which includes the successful acquisition of its assets by the Fahrenheit consortium. The plan must be approved by the New York bankruptcy court overseeing the liquidation.
David Adler, attorney representing a group of certain Celsius claimants, stated that the debtor has chosen to handle retail borrower claims through an offset approach. Although the debtor is demanding repayment of loans (i.e., requiring borrowers to fulfill their obligations), it does not intend to fulfill its own contractual obligations (i.e., returning collateral to borrowers). This treatment would nearly violate consumer lending laws (both state and federal), and therefore the ad hoc borrowers' group will oppose the plan.
