Investor consortium Fahrenheit poised to win Celsius bankruptcy auction
- A lawyer representing Celsius Network stated that the ongoing bankruptcy auction will be concluded within a week.
- A consortium of investors including Coinbase is likely to win the auction for the bankrupt crypto lender’s assets.
A consortium of investors, that includes the largest crypto exchange in the United States, has emerged as the top contender for the assets of bankrupt crypto lender Celsius.
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Fahrenheit LLC, led by TechCrunch founder Michael Arrington’s Arrington Capital, was reportedly poised to acquire Celsius’ assets in the ongoing bankruptcy auction.
Celsius Hopes To Conclude Auction Within Days
According to a report by Reuters, Fahrenheit LLC is currently the lead bidder for Celsius Network’s assets.
During a recent hearing in the New York bankruptcy court, a lawyer representing Celsius told Judge Martin Glenn that the lender hopes to conclude the ongoing bankruptcy auction within days.
As per Celsius attorney Ross Kwasteniet, the auction has taken longer than expected, however, the process was “highly competitive”.
Kwasteniet stated that bids received by the bankrupt crypto lender were “hundreds of millions of dollars” higher than the bid submitted by NovaWulf LLC, the digital asset investment firm that emerged as Celsius’ initial buyer.
NovaWulf’s bid faced competition from Fahrenheit LLC, which included U.S. Data Mining Group Inc, Proof Group Capital Management LLC, Ravi Kaza, former Algorand CEO Steven Kokinos and Coinbase.
The bankruptcy auction also saw participation from the Blockchain Recovery Investment Committee, which included the Gemini Trust Company, Van Eck Absolute Return Advisers Corporation, Global X Digital and Plutus Lending LLC.
Celsius is reportedly considering the bids submitted by Fahrenheit and NovaWulf, with Fahrenheit taking the lead.
Fahrenheit previously stated that it plans to lead Celsius’ crypto lending and bitcoin mining business out of bankruptcy.
The crypto lender reportedly expects to conclude the auction within a week.
The latest development comes as good news for the firm’s customers, who were stranded since July last year when the crypto lender filed for Chapter 11 bankruptcy.