Two new consortiums will dispute the assets of bankrupt cryptocurrency lender Celsius Network at an auction scheduled for April 25 in New York. According to reports and court documents, cryptocurrency exchanges Gemini and Coinbase were among the firms that participated in the bidding.
One of the consortiums was Fahrenheit, backed by venture capital firm Arrington Capital, which is owned by blockchain investor Michael Arrington, court documents show. Other participants in the consortium include Proof Group Capital Management, former Algorand CEO Steven Kokinos and in vestment banker Ravi Kaza. According to Fortune, Arrington mentioned Coinbase as one of the companies supporting the Fahrenheit consortium in an April 22 tweet that has since been deleted. Coinbase declined to comment for the publication.
The second group to bid on Celsius assets is the Blockchain Recovery Investment Committee, backed by crypto exchange Gemini, fund manager VanEck, Bitcoin, Mining companies Global X Digital and Plutus Lending. Both consortia are vying for assets from NovaWulf Digit al Management, which is a “stalking bidder” a term used to describe the first bidder for a bankruptcy company that sets the bar for other bidders. NovaWulf's proposal includes a direct cash contribution of $45 million to $55 million and the creation of a new public platform wholly owned by Celsius cred itors . Under NovaWulf's proposal, clients can expect to get back up to 70% of their money.
According to Arrington's tweet, the Fahrenheit consortium is also proposing the formation of a new company “whose sole objective is to grow these assets and complete the stakeholders.” The company will be run by “a group of verified crypto operators” and hold “A large number of bitcoin mining assets, retail and institutional loans, various crypto-core assets, and venture capital portfolios,” Arrington said. The auction is an important step for Celsius customers to recover their funds. The company filed for Chapter 11 bankrupt cy in july 2022 after halting withdrawals, citing "extreme market conditions" amid rumors of its insolvency.
