Fahrenheit to take over Celsius

New Jersey-based cryptocurrency lender Celsius Network has announced it will be bought by a consortium called Fahrenheit.

Celsius filed for bankruptcy in July 2022 – a month after it froze all transactions, and at a time when the crypto sector was rocked by trouble at big players Terraform Labs and Binance.

A late January court-appointed investigation concluded that the business model Celsius promoted was not the one it operated. Celsius also concealed from investors that the initial coin offering (ICO) of its CEL tokens failed to meet its $50 million earnings target. Furthermore, former CEO Alex Mashinsky promised to buy the unsold tokens from the ICO, but never followed through. The company then propped up its token by purchasing it itself, unbeknownst to customers.

The auction to find a buyer for the frozen crypto lending and mining business began April 22.

Fahrenheit will provide the capital, management team, and technology to ...