Coinbase and Gemini join the bidder race for the assets of Celsius Network: Report

Coinbase and Gemini join the bidder race for the assets of Celsius Network: Report

The leading cryptocurrency exchanges of Coinbase and Gemini are part of the two consortia who, according to a court file and a report by Fortune at a auction planned for the assets of the bankruptcy crypto loan Celsius Network for Tuesday, April 25, 2023.

The court document announced that the auction from 2 p.m. EPT in the New York offices of Kirkland and Ellis, the law firm, which would be the bankruptcy of Celsius, would take place.

Coinbase and Gemini want to offer Celsius-Assets

A consortium that Celsius wants to take over is fahrenheit, a group that, in addition to US Data, supported by the blockchain-based risk capital company Arrington Capital and its founder Michael Arrington. Other supporters are Proof Group Capital Management, the former CEO of Algorand, Steven Kokinos, and investment banker Ravi Kaza.

Arrington mentioned in a tweet on Saturday the participation of Coinbase Discuss Participation in the bidder procedure. The famous risk capital provider deleted the tweet for unknown reasons and Mint -based could not make a comment.

On the other hand, the second consortium is called Blockchain Recovery Investment Committee. It is supported by twins a company in shared possession of the Winklevoss twins, the fund manager van Eck, the Bitcoin mining company Global X Digital and by Plutus Lending.

The two consortia will take part in the auction together with the asset manager NovaWulf, the stalking-Horse bidder. A stalking-Horse bidder is the first bidder for a bankrupt company that defines the bar for other bidders before an auction.

New bidders will most likely win

The plan proposed by NovaWulf provides that Celsius General Earn believer, who have paid less than $ 5,000 on the platform, received about 70 % of their means in liquid crypto-assets. Users with EARN claims of more than $ 5,000 receive liquid crypto-assets and tokenized equity on the new Celsius platform, which is completely owned by the creditors.

Persons familiar with the matter tells the luck that one of the two consortia will most likely win the auction because they are supported by well-known crypto companies that, in contrast to Novawulf, could achieve more emphasis instead of operating most of the assets from Celsius.

The assets include investments in several startups supported by risk capital, a loan book and many crypto mining machines that could bring in their new owner immediate returns.

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