Crypto-Lender Celsius Auction Failure Draws Arrington, Gemini

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(Bloomberg) – Failed crypto lender Celsius Network Ltd. attracted two new bidders in a three-way auction scheduled for Tuesday, according to a filing Saturday by Kirkland & Ellis, which is overseeing the bankruptcy.

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Fahrenheit LLC, a consortium backed by Techcrunch Inc. founder Michael Arrington, and Gemini Trust-backed Blockchain Recovery Investment Committee, led by the Winklevoss twins, have joined an earlier bid from NovaWulf Digital Management to manage a restructured version of the company bankrupt cryptocurrency. and exchange-traded fund manager Van Eck Absolute Return Advisers Corporation.

Meanwhile, Celsius’ official creditors’ committee won court approval on April 18 to assert claims including fraud and negligent misrepresentation against the bankrupt crypto lender on behalf of its creditors. account.

Allegations of fraud and misrepresentation have plagued Celsius since it filed for bankruptcy with a $1.19 billion deficit in July. The company publicly made false claims that keeping money with Celsius was safer than with a bank, Aaron Colodny, a lawyer representing the official unsecured creditors committee, said at the hearing on 18 april.

Bankruptcy is Celsius Network LLC, 22-10964, US Bankruptcy Court for the Southern District of New York (Manhattan).

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