Celsius Recovery Plan Similar To Bitfinex’s After BTC Hack In 2016

The Celsius recovery plan is similar to the one that we saw back in 2016 of Bitfinex after the Bitcoin hack which saved the exchange from liquidation so let’s read more today in our latest cryptocurrency news.

Simon Dixon proposed a Celsius recovery plan similar to the solution Bitifnex used in its Bitcoin hack in 2016. the lead investor of the platform and the co-founder Simon Dixon offered to assist the network by deploying similar financial innovation that was used in 2016 to save Bitfinex from liquidation. Although the statement from Dixon didn’t include specific details of the recovery plan, Dixon noted it will be similar to the one offered by Bitfinex after the hack of 2016 which he claims was resolved in a few months:

“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.”

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

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 19, 2022

Dixon noted that as a Celsius shareholder and lender and because of the short-term systemic impact on those that own BTC, 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.”

BnkToTheFuture is a global investment platform that allows investors to invest in financial technology companies, funds, and other financial products with the platform touting a network of more than 85,000 qualified investors. In June 2020, Celsius launched an equity offering with the investment platform and raised $20.46 million through 1039 investors.

The Big #CELShortSqueeze Explained:
1. Buy CEL on FTX.
2. Move tokens to MetaMask.
3. Connect to 1inch and set sell limit order at $100.
4. RT. pic.twitter.com/okG0tTvumZ

— Celsians (@CelsiansNetwork) June 19, 2022

Dixon’s plan for the platform takes inspiration from the company solutions of 2016 when Bitfinex announced it lost 120,000 BTC to a cybersecurity breach which caused a loss of $72 million of customers’ funds at the time. Rather than pursuing the liquidation proceedings, Bitfinex came up with an innovative recovery plan that involved promises to repay BFX tokens to customers and represent the value of money lost in the hack. The tokens were tradeable on the market or can be held later for future repayment of $1.00  per token and allow customers to speculate on the company’s recovery.

1/16 Let’s wait to hear an official statement from @CelsiusNetwork. But if that statement is positive, then this is GameStop, AMC and Wall Street Bets all over again (the sequel.)

These are my thoughts on the short sellers. I can only speak for that part of the attack on https://t.co/BbnmeBR1RT

— #CELShortSqueeze ©️ ⚡️ (@otisa502) June 15, 2022

BnkToTheFuture added to the solution by working with bitfinex to allow customers to convert their BFX tokens into the equity of the company. Seven months later, BnkTothefuture reported the plan was working with victims recovering between 75% to 100% of the funds via various measures available to them:

“In 2016, Bitfinex needed a plan to recover from their hack and the company I co-founded, BnkToTheFuture.com, supported them and executed a recovery that involved security tokens, debt, and equity and gave investors a very high return for the high risk they took.”