Cryptocurrency lender Celsius Network selected Fahrenheit, a group of investors led by TechCrunch founder Michael Arrington, to run the reorganized company as it moves toward emerging from bankruptcy, WSJ Pro Bankruptcy reported. Under the agreement, which is part of its chapter 11 exit plan, Celsius will distribute cryptocurrency to customers and will create a reorganized public company to manage illiquid assets, including its nascent bitcoin-mining business, according to papers filed in court Thursday. Fahrenheit is owned by Arrington’s investment firm Arrington Capital; crypto-mining company US Data Mining Group, also known as US Bitcoin; Proof Group Capital Management; tech entrepreneur Steven Kokinos; and crypto investor Ravi Kaza. The winning bidder is also affiliated with senior executives at distressed-debt specialist Fortress Investment Group. Celsius was one of the first in a wave of crypto lending platforms that failed last year. Selecting a manager for the company’s assets is among the first steps on its path out of chapter 11 and toward compensating hundreds of thousands of individual customers whose crypto holdings on the platform have been frozen since it filed for bankruptcy last summer.
