Consortium Behind Winning Bid for Celsius Bankruptcy Proceedings Provides Update as Chapter 11 Plan Confirmed by Court
Arrington Capital, US Bitcoin Corp., Proof Group, Steve Kokinos and Ravi Kaza comprised group that won the bid for Celsius Assets earlier this year
MIAMI, Nov. 9, 2023 /PRNewswire/ -- Arrington Capital, a thesis-driven firm investing in digital assets and Web3 since 2017, today announced that the Chapter 11 plan for the Celsius bankruptcy proceedings the firm has been involved in was confirmed by the United States Bankruptcy Court for the Southern District of New York.
Arrington Capital, part of a consortium that emerged as the winning bidder in the Celsius bankruptcy auction, collaborated with key players including US Bitcoin Corp., Proof Group, Steven Kokinos, and Ravi Kaza. The consortium's proposed plan received overwhelming support from creditors, with 95% of voters in favor, during a recent vote earlier this month. The confirmed plan outlines a strategic approach, providing capital, management team, and technology required to establish and operate the new entity as outlined in the bid, which will be implemented pursuant to a Chapter 11 plan.
The key provisions included a distribution of liquid cryptocurrency to account holders, settlements with various groups, and the creation of a new public, regulatory compliant company that will manage Celsius' illiquid assets. The new company will be overseen by a newly appointed Board of Directors.
"This has been a lengthy and complicated process for all involved, but we are happy with the result. I am excited to see Celsius becoming a new version of itself - not something that all companies who failed last year will be able to do," said Michael Arrington, Founder of Arrington Capital. "I'm proud of the team that came together to stand up for creditors, and who are dedicated to building the future of Web3 finance."
"Confirmation of the plan by the courts is a major milestone and brings us one step closer to ushering the new entity into its new chapter of growth," said Steve Kokinos, proposed CEO of the new entity. "We look forward to sharing more and engaging further with the Celsius community on our plans for the new organization."
Driven by a long-term vision for Web3, Arrington Capital, US Bitcoin, Proof Group, Ravi Kaza and Steve Kokinos joined the Celsius proceedings in 2023 with a commitment to rectify issues for creditors and contribute to a positive outcome for the broader industry. Despite the challenges faced by large web3 companies last year, Celsius stands out as a company well-positioned to be reinvented under the consortium's stewardship.
About Arrington Capital
Arrington Capital is a digital asset management firm primarily focused on blockchain-based capital markets. The firm, founded in 2017 by TechCrunch and CrunchBase founder Michael Arrington, TechCrunch CEO Heather Harde and Geoffrey Arone, has invested in hundreds of startups around the world. Arrington Capital is a seasoned, international team composed of Silicon Valley veterans and operators with deep venture capital experience and crypto native roots. Arrington Capital's first fund was Arrington XRP Capital, and has expanded to multiple funds over time. For more information on Arrington Capital, visit https://www.arringtoncapital.com/.
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