March 27, 2024
Former Algorand CEO Steve Kokinos to Lead New Entity Taking Over Celsius Amid Bankruptcy
Latest Cryptocurrency News

Former Algorand CEO Steve Kokinos to Lead New Entity Taking Over Celsius Amid Bankruptcy

According to court documents filed on Friday, Steve Kokinos, the former CEO of Algorand, will take over as CEO of the organization that will take over Celsius’ activities and will sit on a board with two members of the insolvent crypto lender’s creditor committee.

As the cryptocurrency meltdown began to take hold in July of last year, Celsius filed for bankruptcy. At the moment, creditors are casting votes on whether they want to sell the company to Fahrenheit Holdings, which could result in a partial return on their investment.

In July 2022, Kokinos resigned from his position at the staking-based blockchain Algorand. Along with the hedge fund Arrington Capital and the mining company US Bitcoin, whose respective leaders Asher Genoot and Michael Arrington will also serve on the board, he is a co-owner of Fahrenheit.

A brief resume included in the court documents described Steve as the proposed CEO of the Delaware corporation, as of yet unnamed but referred to in the filings as NewCo. “Steve has been a serial entrepreneur and investor for over 25 years, founding and operating companies ranging from internet infrastructure, cloud software, communications, and crypto,” the resume stated.

Scott Duffy and Thomas DiFiore, the two co-chairs of Celsius’ creditor committee, who were contacted at key points of the sale process to represent the interests of people owing money, and who were allowed to appoint six of the nine board members, are now members of the NewCo board.

Duffy and DiFiore did not consider their nomination, which was made “after extensive consultations with the Committee’s legal and financial advisors,” according to the petition.

Other board members include Elizabeth LaPuma, who leads the audit committee at commercial real estate firm WeWork; Frederick Arnold, chairman of the holding company managing the estate of bankrupt Lehman Brothers; and Emmanuel Aidoo, an investment banker from Perella Weinberg who previously worked on the transaction.

Until September 22nd, creditors must approve the sale proposal. Alex Mashinsky, the former CEO of Celsius, was detained in July and has pleaded not guilty to charges of manipulating the CEL token and engaging in securities fraud.

Image: Freepik

Related posts

Binance Execs Detained in Nigerian Capital Despite Exit

Anna Garcia

Blockchain at COP28 Pushes for Decentralized Climate Markets

Kevin Wilson

UK’s FCA Warns Crypto Firms of Upcoming Regulations, Offers Extension

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More