Michael Arrington, the brains behind Arrington Capital, recently resigned from the board managing the bankruptcy strategy of the erstwhile crypto lender, Celsius. Ravi Kaza, an investor and advisor at Arrington Capital and Michael’s partner at Fahrenheit, will now occupy the vacated seat.
Arrington’s exit wasn’t without a dash of intrigue. In a post on X (previously known as Twitter), he attributed his decision to disagreements over the board’s structure, particularly the board observers. However, he steered clear of diving into the heart of the matter, stating, “I am not able to go into much detail… This statement was heavily edited by attorneys.” The shuffle was officially stamped on September 23 when a court document showcased Arrington’s substitution with Kaza.
Nevertheless, as the Celsius saga unfolds, Arrington remains rooted, albeit from the sidelines. He elucidated, “I still fully support the deal and look forward to contributing in ways other than participating on the board of directors.” It appears Celsius’s transition into a user-owned entity and the subsequent distribution of assets to its clients will still feel Arrington’s touch.
Furthermore, a trip down memory lane reveals more plot twists. In May, with Arrington at the helm, Fahrenheit bagged a bid securing over $2 billion of Celsius assets. But trouble began brewing in July 2022. Celsius pressed the pause button on withdrawals amidst a market nosedive catalyzed by the Terra Luna ecosystem’s downfall. This debacle drew investigative eyes, culminating in Celsius CEO Alex Mashinsky being slapped with a septet of criminal charges, though he refuted them all.
Additionally, Celsius’s chief revenue officer, Roni Cohen-Pavon, recently entered a guilty plea on four fraud-related counts, echoing allegations similar to those levied against Mashinsky. As September 15 news pieces spotlighted, Cohen-Pavon is now collaborating with US officials in their ongoing probe.
As the Celsius narrative continues to evolve, many eyes will remain fixed on how the drama, characterized by high stakes, alleged misdemeanors, and boardroom shifts, pans out.
