An auction for the assets of bankrupt crypto lender Celsius Network is scheduled to take place on April 25 in New York, with two new consortiums vying for the assets. Reports and court filings indicate that Gemini and Coinbase, two major crypto exchanges, are among the companies participating in the bids. One of the consortiums is called Fahrenheit, backed by venture capital firm Arrington Capital, owned by blockchain investor Michael Arrington, and comprises Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza. The other consortium is the Blockchain Recovery Investment Committee, supported by Gemini, fund manager VanEck, Bitcoin mining firm Global X Digital, and Plutus Lending. Both consortiums are challenging the assets with NovaWulf Digital Management, the first bidder of a bankrupt company that sets the bar for other bidders.
NovaWulf’s proposal includes a direct cash contribution ranging from $45 million to $55 million, and the creation of a new public platform owned entirely by Celsius creditors, allowing customers to recover up to 70% of their funds. Fahrenheit consortium proposes creating a new company that aims to grow the assets to make stakeholders whole, with “a group of proven crypto operators” managing substantial bitcoin mining assets, retail and institutional loans, a range of crypto core assets, and a venture capital portfolio. The auction presents a significant opportunity for Celsius’ customers to recover their funds after the company filed for Chapter 11 bankruptcy in July 2022, halting withdrawals citing “extreme market conditions” amid rumors of its insolvency.
