Coinbase and Gemini to join Celsius auction

Two new consortiums will join Arrington Capital in the bid for the remainder of the insolvent firm's crypto assets.

Crypto exchanges Gemini and Coinbase are reportedly disputing bankrupt crypto lending firm Celsius Network's assets in an auction scheduled for Tuesday, April 25, in New York.

Court documents show Fahrenheit, backed by venture capital firm Arrington Capital – owned by blockchain investor Michael Arrington – is thought to be part of the Coinbase-backed group bidding for the insolvent lender’s assets.

Both firms are disputing the assets with NovaWulf Digital Management, known as the ‘stalking horse bidder’ a term to describe an initial bidder of a negotiation or agreement who sets the bar for future bidders.

The proposal from NovaWulf includes a direct cash contribution ranging from $45m to $55m, respectively.

If successful in winning the bid, customers are expected to receive up to 70% of their funds under the NovaWulf proposal.

Alongside a recovery of funds, based on a series of tweets by Arrington, the Fahrenheit consortium proposes the creation of a new company run by “a group of proven crypto operators with the sole goal of growing those assets to make stakeholders whole”, alongside “substantial bitcoin mining assets, retail and institutional loans, a variety of crypto core assets, and a venture capital portfolio”.

Other participants in the auction involve investment banker Ravi Kaza, former Algorand chief executive Steven Kokinos, and Proof Group Capital Management.

The auction is a major step in Celsius’ customers receiving the return of their funds after the company filed for Chapter 11 bankruptcy in July 2022 due to “extreme market conditions”.

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Written by Isabella Aslam

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Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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