Celsius recovery plan proposed amid community-led short-squeeze attempt

cointelegraph.com:

Celsius’ lead investor BnkToTheFuture and its co-founder Simon Dixon have offered to assist the network by deploying similar “financial innovation” used in 2016 to save cryptocurrency exchange Bitfinex from liquidation.

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

Although the statement from Dixon on Saturday, June 18, did not include specific details of the recovery plan offered to the Celsius’ board and CEO Alex Mashinsky, Dixon noted it would be similar to the one offered to Bitfinex after its hack in August 2016, which he claims was resolved within nine months.

Dixon noted that as a Celsius shareholder and lender, and due to the “short-term systemic impact on those that own Bitcoin,” he was “keen to support Celsius with a recovery plan,” 

“It’s my position to offer solutions as we have the experience, licenses, and technology to do so,” he stated.

BnkToTheFuture is a global online investment platform that allows investors to invest in financial technology companies, funds, and other new alternative financial products. The platform touts a network of over 85,000 qualified investors. In June 2020, Celsius launched an equity offering with the investment platform, raising $20.46 million through 1039 investors.

Dixon’s plans for Celsius take inspiration from his firm’s solutions in August 2016, after Bitfinex announced it lost approximately 120,000 Bitcoin (BTC) in a cybersecurity breach, causing a loss of around $72 million of customers’ funds at the time.

Rather than pursuing liquidation proceedings, Bitfinex