Investor proposes rescue plan for Celsius Network

Co-founder of the online investment platform BnkToTheFuture, Simon Dixon, has proposed a rescue plan for Celsius Network’s lending service, analogous to Bitfinex’s rehabilitation after the 2016 hack.

I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation https://t.co/FyF1Qaw6ZE

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 19, 2022

“Since 2011 I have seen Mt. Gox collapse, then ICOs, and now the market is sliding due to leverage. In every cycle we have implemented innovative solutions using new technologies. Celsius and CEO Alex Mashinsky have weekly shared their journey, building a community. I hope he finds the right solution, as this is always the case in our industry when financial innovations do not go as they should,” Dixon wrote.

He noted that BnkToTheFuture’s Bitfinex recovery plan included issuing security tokens, debt financing and using its own capital. In his words, investors at the time earned “very high profits for the high risk they took.”

Dixon did not disclose details of the Celsius proposal:

“I am not obliged to disclose information until Alex Mashinsky and the Celsius board are ready. I must propose a solution, because we have the experience, licenses and technology for this.”

In his view, traditional finance “will not have a timely solution for Celsius,” as evidenced by Mt. Gox, the rehabilitation of depositors which has been ongoing for 10 years. The Bitfinex plan worked in nine months, the CEO of BnkToTheFuture noted. 

“Our industry becomes stronger after every catastrophe. Now is the time to offer support on a bottom-up basis, which we have always followed,” Dixon said. 

He noted that a possible Celsius collapse would not affect BnkToTheFuture’s financial position, but would affect 1,039 investors who invested through it in the company.

Earlier, Georgetown University law professor Adam Levitin described Celsius’s bankruptcy as almost inevitable.

According to reports, leading investors in the crypto-lending platform refused to provide it with additional funding.

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