Gemini and Coinbase-supported organizations are set to participate in the auction of bankrupt cryptocurrency lender Celsius’ assets.
These assets include a considerable fleet of mining equipment, a loan portfolio, and stakes in various startups.
The auction itself is scheduled for April 25th. Documents submitted by Kirkland & Ellis lawyers in bankruptcy court introduced two new members.
The the Blockchain Recovery Investment Committee, a consortium backed by the Gemini exchange, and Fahrenheit, which, according to reports, is backed by the Coinbase exchange.
So far, NovaWulf Digital Management has been the only bidder. Their proposal is to create a new platform entirely owned by lenders.
If Fahrenheit emerges as the winner of the auction, they promise to relaunch Celsius and hand over control to a “group of trusted crypto operators.”
The Blockchain Recovery Investment Committee has yet to release any plans regarding the disposal of assets if they win. In July of last year, Celsius filed for financial insolvency (bankruptcy).
The company was expected to present a restructuring plan within four months, but it soon requested an extension of the deadline.
The Celsius leadership is seeking to postpone the vote on the deadline extension to June 30th.
Lawyers for the cryptocurrency lender explained that the extension is critical as it will enable the platform to resolve the situation quickly and efficiently.
In April, Celsius Network filed charges against former client and cryptocurrency blogger Tiffany Fong for alleged disclosure of trade secret data.