Celsius Network: Appoints former Algorand CEO to lead the company, creditors expected to recover over 60% of funds

The cryptocurrency lending institution Celsius, with creditors expected to recover over sixty percent of their funds, has had the Fahrenheit Alliance, which has been approved by the court to acquire its assets, begin the process of establishing a new company. The Alliance has appointed former Algorand CEO Steve Kokinos as the new CEO to take over the operations of Celsius.

Fahrenheit Alliance Forms New Company

According to previous reports, the bankrupt cryptocurrency lending company Celsius has received approval from a judge to sell its assets to the Fahrenheit Alliance, giving creditors hope to recover between 67% to 85.6% of their assets.

The Fahrenheit Alliance is a limited liability company formed by multiple institutions and investors, and its name indicates that it was specifically established to participate in the bidding of Celsius assets (Celsius being in Celsius, Fahrenheit in Fahrenheit). Supporters of the Fahrenheit consortium include: Arrington Capital, US Data Mining Group, Inc. (also known as US Bitcoin Corp.), investment firm Proof Group Capital Management, former Algogrand CEO Steven Kokinos, and banker Ravi Kaza.

Board of Directors Revealed

According to a court document, the company temporarily known as "NewCo" has appointed former Algorand CEO Steve Kokinos and eight other directors as board members, expected to take over the operations of Celsius.

The other eight directors are:

• Michael Arrington of Arrington Capital
• Asher Genoot, President of US Bitcoin Corp
• Frederick Arnold, previously responsible for managing the bankrupt Lehman Brothers
• Elizabeth LaPuma, Chairman of the WeWork Audit Committee/former UBS Executive Director
• Former Credit Suisse executive Emmanuel Aidoo
• Max Holmes: with decades of experience in the financial industry and teaches "Bankruptcy and Reorganization" at NYU Stern School of Business
• Scott Duffy and Thomas DiFiore representing Celsius creditors

Creditors Voting, Expected to Recover Over 60% of Funds

Cryptocurrency lending institution Celsius filed for bankruptcy protection in July last year, owing investors billions of dollars during a downturn in the cryptocurrency market. Creditors are currently voting on Fahrenheit's acquisition proposal, with the deadline for objections set for September 22. If successful, this acquisition could help investors recover over 60% of their funds, far exceeding the 47% return from simply liquidating the assets.