The cryptocurrency market, often seen as a wild west with its constant fluctuation in prices and bankruptcy cases, is about to witness another spotlight in the upcoming shift of power for the previously bankrupt crypto lender, Celsius. As per Friday court filings, former chief executive officer of Algorand, Steve Kokinos, is poised to become the captain of the ship overseeing Celsius’ operations under a currently unnamed Delaware corporation, coded as ‘NewCo’. This transition follows Celsius’ decision to file for bankruptcy in the summer of 2022 amid a tumultuous crypto market crash.
Kokinos, a seasoned entrepreneur and investor with over a quarter of a century in active service, departed the staking-based blockchain, Algorand, in July 2022, around the same period Celsius filed for bankruptcy. There is a note of optimism as Kokinos, a co-owner of Fahrenheit along with notable firms US Bitcoin and Arrington Capital, is anticipated to steer Celsius towards more stable waters.
However, stakeholders are seemingly caught in a web of uncertainty as the transition is paired with the equally important decision to sell Celsius to Fahrenheit Holdings. This could possibly lead to a partial recovery of their assets. Notably, this transaction is teetering on the approval vote by creditors, which is scheduled to take place before September 22.
Adding to the complexity, the NewCo board also consists of Scott Duffy and Thomas DiFiore, co-chairs of Celsius’ creditor committee. In an effort to ensure transparency and fairness, it has been mentioned that Duffy and DiFiore didn’t deliberate on their own appointments, a process handled after extensive conversations with the committee’s legal and financial advisors.
Representing a range of interests on the board are Frederick Arnold of the estate-operating holding company Lehman Brothers, WeWork’s audit committee head Elizabeth LaPuma, and Emmanuel Aidoo of Perella Weinberg, an investment banker who has previously worked on deals.
However, dark cloud still hangs over Celsius as their ex-CEO, Alex Mashinsky was arrested on charges of securities fraud and token manipulation, to which he has pleaded not guilty. This narrative not only signifies a significant shift in power but also ticks the clock on the decision-making process for stakeholders, adding an additional layer of suspense within the ever-dynamic crypto realm.
Source: Coindesk
