There might be a light at the end of the tunnel for struggling crypto lender Celsius Network. Crypto investment platform BnkToTheFuture, one of the company’s shareholders, recently proposed a series of plans that are aimed at saving Celsius from liquidation.
The recent crypto market crash dealt a huge blow to Celsius. The declining prices of cryptocurrencies forced the lender to stop all withdrawals, locking 1.7 million users out of their assets. While the initial idea was to consolidate and wait for the crisis to pass, the company now seems at the point of no return, with bankruptcy being the most likely outcome.
In order to try and stop Celsius’ demise, BnkToTheFuture, which holds 5 percent shares in the lender and is a depositor, is proposing three rescue plans.
The first two plans “involve risks, and full recovery of funds is not guaranteed,” according to the proposal. One is “restructuring to relaunch,” and this route would “allow depositors to benefit from any recovery through financial engineering.” The other calls for “an operational plan that allows a new entity and team to rebuild and make depositors whole.”
Finally, there is also a proposal for outside intervention that would see “the most influential whales in Bitcoin” teaming up with the community to bail out Celsius.
BnkToTheFuture put the plans on the vote and will present the favorite option during an upcoming formal meeting with the Celsius board.