In an auction scheduled for April 25 in New York, two new consortiums will compete for the assets of bankrupt crypto lender Celsius Network. According to rumors and court records, cryptocurrency exchanges Gemini and Coinbase are among the companies bidding.
According to court records, one of the consortiums is Fahrenheit, which is backed by Arrington Capital, which is owned by blockchain investor Michael Arrington. Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza are also members of the partnership.
According to Fortune, Arrington listed Coinbase as one of the companies supporting the Fahrenheit coalition in a since-deleted tweet on April 22. Coinbase did not respond to the publication’s request for comment.
The Blockchain Recovery Investment Committee, sponsored by cryptocurrency exchange Gemini, fund manager VanEck, Bitcoin mining outfit Global X Digital, and Plutus Lending, is the second consortium competing for Celsius assets.
Both consortiums are fighting over the assets alongside NovaWulf Digital Management, the “stalking horse bidder” – the first bidder of a bankrupt company who sets the standard for subsequent bidders. NovaWulf’s proposal comprises a direct monetary investment of $45 million to $55 million, as well as the establishment of a new public platform held entirely by Celsius creditors. According to NovaWulf’s plan, customers can expect to recover up to 70% of their funds.
According to Arrington’s tweets, the Fahrenheit coalition also suggests forming a new firm “with the sole goal of growing those assets in order to make stakeholders whole.” “A group of proven crypto operators” would operate the company, which would have “substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio,” according to Arrington.
The auction is a significant step in the recovery of monies for Celsius’ clients. After ceasing withdrawals, the company filed for Chapter 11 bankruptcy in July 2022, alleging “extreme market conditions” amid rumors of its insolvency.
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