Thu, March 28

BnkToTheFuture Co-founder Simon Dixon Lends Support To Drowning Celsius

Celsius Being Sued by CEO of KeyFi Alleging Multiple Accusations Defi News
  • Celsius raised $20.46 million from 1039 investors in June 2020.
  • Dixon’s organization came up with a solution that saved consumers approx $72M.

BnkToTheFuture and its co-founder Simon Dixon have volunteered to help Celsius by applying the same “financial innovation” utilized in 2016 to preserve cryptocurrency exchange Bitfinex from insolvency.

A recovery plan presented to Celsius’ board, and CEO Alex Mashinsky was not specifically mentioned in Dixon’s speech on Saturday. Still, Dixon indicated it would be similar to Bitfinex’s strategy following its theft in August 2016, which he says was handled in nine months.

Dixon stated:

“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 like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors.”

Creative Recovery Strategy

On the BnkToTheFuture platform, investors may invest in financial technology firms, funds, and other innovative financial products being developed worldwide. Over 85,000 eligible investors are listed on the site. Celsius raised $20.46 million from 1039 investors in June 2020 via an equity offering made through the investing platform.

After Bitfinex reported a cybersecurity incident that resulted in the loss of around 120,000 Bitcoin (BTC), Dixon’s organization came up with a solution that saved consumers approximately $72 million at the time.

As an alternative to going through with a liquidation, Bitfinex devised a creative recovery strategy that entailed making “promises to repay” to clients in the form of BFX tokens, which represented the value of the money that had been stolen. Coins could be exchanged or stored for future payment of $1.00 for each token, which enabled users to bet on the company’s recovery.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.