Failed crypto lender Celsius Network Ltd. has attracted two new bidders in a three-way auction set for Tuesday, according to a Saturday filing by Kirkland & Ellis, which is overseeing the bankruptcy.
(Bloomberg) — Failed crypto lender Celsius Network Ltd. has attracted two new bidders in a three-way auction set for Tuesday, according to a Saturday filing by Kirkland & Ellis, which is overseeing the bankruptcy.Â
Joining an earlier bid by NovaWulf Digital Management to manage a restructured version of the bankrupt cryptocurrency company are Fahrenheit LLC, a consortium backed by Techcrunch Inc. founder Michael Arrington, and Blockchain Recovery Investment Committee, backed by Gemini Trust, run by the Winklevoss twins, and exchange-traded fund manager Van Eck Absolute Return Advisers Corporation.
Meanwhile, the official committee of Celsius creditors won court approval on April 18 to assert claims including fraud and negligent misrepresentation against the failed crypto lender on behalf of its account holders.Â
Allegations of fraud and misrepresentation have plagued Celsius since it filed for bankruptcy with a $1.19 billion deficit in July. The company made false statements publicly that signaled keeping money with Celsius was safer than that of a bank, Aaron Colodny, a lawyer representing the official unsecured creditor’s committee, said during the April 18 hearing.
The bankruptcy is Celsius Network LLC, 22-10964, US Bankruptcy Court for the Southern District of New York (Manhattan).
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