Two new consortiums will dispute the assets of bankrupt crypto lender Celsius Network in an auction scheduled for April 25 in New York. According to reports and court documents, cryptocurrency exchanges Gemini and Coinbase are among the companies participating in the offerings.

Court documents show that one of the consortia is Fahrenheit, backed by venture capital firm Arrington Capital, owned by blockchain investor Michael Arrington. Other participants in the consortium include Proof Group Capital Management, former Algorand CEO Steven Kokinos and investment banker Ravi Kaza.

Arrington mentioned that Coinbase was one of the companies backing the Fahrenheit Consortium in a since-deleted tweet on April 22, according to a Fortune report. Coinbase declined to comment on the post.

Screenshot: Michael Arrington’s Twitter thread about the Celsius auction

The second group bidding on Celsius assets is the Blockchain Recovery Investment Committee, backed by cryptocurrency exchange Gemini, fund manager VanEck, Bitcoin (BTC) mining firm Global X Digital, and Plutus Lending.

Both consortia are disputing the assets with NovaWulf Digital Management, the “stalking horse bidder,” a term used to describe the first bidder for a failing company that sets the standard for other bidders. NovaWulf’s proposal includes a direct cash contribution in the range of $45 million to $55 million, as well as the creation of a new public platform wholly owned by Celsius creditors. Clients are expected to recover up to 70% of their funds with the NovaWulf proposal.

According to Arrington’s tweets, the Fahrenheit Consortium also proposes the creation of a new company “with the sole objective of growing those assets so that interested parties can integrate”. The company would be run by “a group of proven crypto operators” and would have “substantial bitcoin mining assets, retail and institutional lending, a variety of core crypto assets and a venture capital portfolio,” Arrington said.

The auction is an important step for Celsius customers to recover their funds. The company filed for Chapter 11 bankruptcy in July 2022 after halting withdrawals, citing “extreme market conditions” amid rumors of insolvency.

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