Cryptocurrency lender Celsius’ failed auction

24.04.2023

Bankrupt cryptocurrency lender Celsius Network Ltd. has attracted two new bidders in a three-way auction set for Tuesday, according to Saturday’s announcement from Kirkland & Ellis, which is overseeing the bankruptcy.

NovaWulf Digital Management’s earlier bid to run a restructured version of the bankrupt cryptocurrency company was joined by Fahrenheit LLC, a consortium backed by Techcrunch Inc founder Michael Arrington, and Blockchain Recovery Investment Committee, backed by Gemini Trust, managed by the Winklevoss twins, and exchange-traded fund manager Van Eck Absolute Return Advisers Corporation.

Meanwhile, on 18 April, Celsius’ official creditor committee received court permission to pursue claims, including fraud and negligent misrepresentation, against the failed cryptocurrency lender on behalf of its account holders.

Allegations of fraud and misrepresentation have plagued Celsius since it filed for bankruptcy in July with a $1.19 billion deficit. The company has publicly made false claims that suggested it was safer to keep money with Celsius than with a bank.