‘LEAKED BIDS’ Binance, Galaxy Digital among secret bidders for Celsius assets

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At least five companies have made bids on Celsius Networks crypto assets, including Binance, Bank To The Future, and Galaxy Digital, according to leaked information shared by crypto blogger Tiffany Fong.

Fong, a follower of Celsius developments who rose to fame after several exclusive interviews with Sam Bankman-Fried after her collapse, leaked information from documents she says were obtained on December 20 detailing the deals on the assets. Celsius Networks cryptographics.

In a Substack post, Fong explained that she initially refrained from disclosing the bids to avoid disrupting the bidding process, but was prompted to do so after recent comments from a lawyer representing Celsius.

“I have refrained from sharing bids publicly to avoid disrupting bidding procedures or negatively impacting customer collections; however, at yesterday’s Celsius Network Tribunal hearing (1/24/23), Kirkland & Ellis attorney Ross M. Kwasteniet claimed the offers “have not been compelling, Fong explained.

Among the bidders revealed by Fong are crypto exchange Binance, online investment platform Bank To The Future, digital asset investment manager Galaxy Digital, crypto trading firm Cumberland DRW and the investment in NovaWulf digital assets.

According to Fong, the proposals from these crypto firms were submitted in November 2022, with Fong noting that they are “mostly abandoned.”

The blog said Binance had offered a bid of $15 million for the assets, indicating that $12 million would go to the Celsius domain and $3 million would be distributed to migrated users on a pro-rata basis.

In Binance’s purported summary term sheet, he stated that he intended to acquire and transfer all liquid and some illiquid crypto at fair market value to the Binances platform.

Galaxy Digital has offered to acquire all illiquid, staked Ethereum (ETH) assets as a stalking horse bidder “a name given to the original bidder for the sale of distressed assets for an amount of approximately $67 million.

Meanwhile, Bank To The Future’s offer stated in its transaction structure that all liquid crypto assets and collateral were to be returned to creditors on a pro rata basis, under the direction of Bank To The Future.

In a January 26 tweet, Bank To The Future CEO Simon Dixon has since confirmed that the contents of the leaked deals regarding his company are accurate.

I can confirm this is an accurate reflection of the @BankToTheFuture term sheet sent out to give everyone all remaining coins at no cost and 100% of illiquid assets. https://t.co/MrYGvoB9eB

— Simon Dixon (@SimonDixonTwitt) January 26, 2023

Fong noted in the blog post that she was only aware of these five bids on Celsius crypto assets.

She added that Novawulf’s offer was particularly attractive, given its vague resemblance to the restructuring plans newly proposed by Celsius Networks.

In comments to Cointelegraph, Fong said she had conversations with several Celsius Network employees and, to her surprise, most employees weren’t even told about the deals.

She added that even senior managers were unaware of this information.

Related: Celsius rounds up 30 potential bidders for its assets, motion to withdraw is approved

Fong said creditors and even most employees have been left in the dark about offers on crypto assets that investors have deposited on the platform.

Fong isn’t sure how things will play out, but thinks creditors deserve more transparency and have the right to see offers on assets we’ve deposited on the platform.

Cointelegraph has sought comment from Binance, Galaxy Digital, BnkToTheFuture, NovaWulf and Cumberland DRW.

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