In a significant development involving Celsius, Steve
Kokinos, the former CEO of Algorand, is poised to take the reins of the crypto
lender in the aftermath of its bankruptcy. This development was disclosed in a
filing made on Friday before the US Bankruptcy Court Southern District of New
York.
Additionally, prominent
executives from WeWork, Lehman Brothers, and mining giant US Bitcoin are set to
join the board of the company along with two members of Celsius’ committee of
creditors. Currently, the fate of Celsius hangs in the balance as creditors
decide whether to approve the sale of the company to Fahrenheit Holdings.
Kokinos, the incoming
CEO of the as-yet-unnamed Delaware-based corporation, referred to as NewCo in
court filings, has experience in the crypto and technology space. With more
than 25 years of experience as an entrepreneur and investor, Kokinos has a
diverse portfolio spanning internet infrastructure, cloud software,
communication, and crypto. He left his position at Algorand in July 2022.
The other members of the
NewCo board are Asher Genoot and Michael Arrington, the executives from mining
company US Bitcoin and hedge fund Arrington Capital, respectively.
Frederick Arnold, the
Chairman of the holding company overseeing the bankrupt Lehman Brothers;
Elizabeth LaPuma, heading the audit committee at WeWork; and Emanuel Aidoo, an
investment banker from Perella Weinberg, are among the appointees to the new
entity.
Fahrenheit Holdings, a
company backed by industry heavyweights such as US Bitcoin, Arrington Capital,
and Steve Kokinos, won the bid to rescue Celsius. Part of this plan includes
taking over the company’s institutional loan portfolio, staked crypto assets,
and Bitcoin mining units.
Celsius’ Former CEO
Faces Legal Hurdles
Celsius’ attempts to
revive its operations come against the backdrop of a legal battle involving its
former CEO, Alex Mashinsky. In a recent report by Finance
Magnates, Mashinsky, who has
been facing charges related to securities fraud and alleged manipulation of CEL
tokens, had his assets
frozen by the court.
The assets subject to
the freeze encompass a range of financial holdings, including corporate bank
accounts and valuable property in Austin, Texas. These assets have reportedly
come under investigation as authorities
probe alleged…
