9 month recovery plan for Celsius announced by lead investor Bnk to the Future Liam ‘Akiba’ Wright · 5 hours ago · 2 min read
A recovery plan has been released for Celsius from Bnk to the Future who have over 1,000 investors exposed to Celsius.
Cover art/illustration via CryptoSlate
Founder of web3 investment firm, Bnk to the Future Simon Dixon, who led the first investment round for Celsius has announced a recovery plan for the struggling platform. The recovery was directed to “both the Celsius community and [the Bnk to the Future] investor community in light of the recent suspension of withdrawals at Celsius.”
Dixon compared the current situation to that of 2011 and the Mt. Gox collapse before saying, “I’m confident he will find the right solution like our industry always has when financial innovation goes wrong.” Bnk to the Future also supported Bitfinex in 2016 after it was hacked and “executed a recovery that involved security tokens, debt and equity and gave investors a very high return for the high risk they took.”
The Bnk to the Future founder also confirmed that a “small portion” of his total wealth is invested in Celsius so he is personally exposed to any potential insolvency. However, he also stated that he is “more concerned for community members that may have a chance at preserving a larger percentage of their wealth through a recovery plus an education in risk management.”
Dixon also confirmed that he believes the situation can:
“Only be solved with a solution using financial innovation like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors. It’s not my place to reveal information before Alex and the Celsius board are ready, it’s my position to offer solutions as we have the experience, licences and technology to do so.”
No further information will be released until the Celsius board “are ready” therefore investors could still be waiting a while. However, the content of the announcement does suggest that the situation at Celsius is serious. If a recovery plan is put in place by Bnk to the Future, Dixon expects it to be resolved within “9 months.”
Speaking about the announcement, Rob Wolff of Digital Asset News declared,
“If @SimonDixonTwitt is involved then things are looking a little bit brighter. This is the other Simon I trust in the dove.”
The rest of the community appeared less convinced bemoaning that “this is not a recovery plan” and that “users got a worthless token” with the Bitfinex recovery plan. CryptoSlate will stay close to this story and continue to report on any official announcement of the details when they are released by Celsius.