Crypto Exchanges Gemini and Coinbase Join Bidding for Celsius Network Assets in Upcoming Auction
An auction is scheduled for April 25 in New York to decide who will acquire the assets of bankrupt crypto lender Celsius Network, and two new consortiums will be competing for the bids.
Among the companies vying for the acquisition are crypto exchanges Gemini and Coinbase, as per reports and court filings.
One of the consortiums, called Fahrenheit, is supported by venture capital firm Arrington Capital, which is owned by blockchain investor Michael Arrington, as per court documents.
Other members of the consortium are Proof Group Capital Management, former Algorand CEO Steven Kokinos, and investment banker Ravi Kaza.
Arrington tweeted on April 22 that Coinbase is one of the companies backing the Fahrenheit consortium, but the tweet has since been deleted, according to Cointelegraph.
Coinbase declined to provide a statement.
Two consortiums, the Blockchain Recovery Investment Committee and Fahrenheit, are competing with NovaWulf Digital Management, the initial bidder, for the acquisition of Celsius Network’public platforms assets.
The Blockchain Recovery Investment Committee is supported by crypto exchange Gemini, fund manager VanEck, Bitcoin mining firm Global X Digital, and Plutus Lending.
NovaWulf’s bid involves a cash contribution of $45 million to $55 million and the establishment of a new public platform owned entirely by Celsius creditors, with customers expected to recover up to 70% of their funds.
Meanwhile, the Fahrenheit consortium, as per Arrington’s tweets, proposes forming a new company that will be run by experienced crypto operators and hold significant bitcoin mining assets, a portfolio of venture capital, various crypto core assets, and retail and institutional loans.
This auction is a significant step for Celsius Network’s customers, who were unable to withdraw their funds after the company filed for Chapter 11 bankruptcy in July 2022, citing “extreme market conditions” amid insolvency rumors.