The Current Status of Celsius Network: One Year Later

Discover the current status of Celsius Network, one year after its fiasco. From bankruptcy to the emergence of Fahrenheit as a solution.

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The Celsius Network, a prominent crypto lender, experienced a tumultuous year in 2022, culminating in a Chapter 11 bankruptcy filing after a series of setbacks. The companies troubles came in the wake of FTX’s collapse that saw linked exchanges fail as well increase more scrutiny on the crypto space

Voyager, another consumer-facing crypto lending platform, is one such crypto firm that filed for bankruptcy protection following losses from its exposure to Three Arrows Capital, another direct link to the now bankrupt FTX. The industry faced increased scrutiny, with several states launching investigations into Celsius.

The company made headlines by freezing customer accounts due to what it called “extreme market conditions.” Court filings revealed that Celsius faced significant liabilities, including customer holdings, amounting to billions of dollars.

Celsius, once hailed as a successful centralized finance (CeFi) project, offered high annual percentage yields (APYs) and managed billions of dollars in assets. However, in June 2022, the company froze user assets, citing extreme market conditions and liquidity concerns.

Celsius bankruptcy plan snapshot | Source: Twitter

Fahrenheit takes over Celcius

The most recent events concerning Celsius involve the selection of Fahrenheit LLC as the winning offer after an auction procedure that was allowed by the court. Fahrenheit is a consortium of buyers consisting of Arrington Capital and US Bitcoin Corp groups. The illiquid assets held by Celsius will be managed by the newly formed business, NewCo, which will be owned entirely by the account holders of Celsius. Fahrenheit will construct a new corporation (referred to as “NewCo”) via the use of a Chapter 11 plan. The strategy calls for considerable distributions of Celsius’ liquid cryptocurrency to account holders while simultaneously lowering management costs. 

In addition, Celsius was successful in securing a backup bid with the Blockchain Recovery Investment Consortium, which offered another route for the establishment of a publicly listed mining company. Celsius intends to finalise agreements, submit a new Chapter 11 plan, and proceed with the restructuring process with Fahrenheit if the court grants their request for a stay of proceedings in the bankruptcy case.

The recent events with Fahrenheit provide account holders with a viable way to reclaim their funds and define a new direction for Celsius’ illiquid holdings. In addition, these developments give a fresh perspective on the future of Celsius.


In conclusion, the Celsius Network fiasco of 2022 brought to light the risks and challenges faced by crypto lenders during periods of market turbulence. The freezing of customer accounts and subsequent bankruptcy filing sent shockwaves through the industry, with Celsius joining the ranks of other crypto lenders grappling with insolvency issues. The aftermath of the incident sparked investigations and legal actions, shedding light on the need for regulatory oversight and investor protection in the crypto lending space.

However, amidst the turmoil, there is a glimmer of hope with the emergence of Fahrenheit as the winning bid in Celsius’ bankruptcy proceedings. The selection of Fahrenheit brings potential opportunities for account holders to recover their assets and marks a step towards restructuring and rebuilding Celsius’ operations. While the road to recovery may still be uncertain, the developments with Fahrenheit demonstrate the resilience and adaptability of the crypto industry, as stakeholders work towards creating a more stable and regulated environment for crypto lending. 

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