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Michael Arrington Departs From Board Overseeing Celsius Bankruptcy

2 mins
Updated by Kyle Baird
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In Brief

  • Michael Arrington, founder of Arrington Capital, steps down from the board overseeing Celsius' bankruptcy plan.
  • Ravi Kaza, Arrington's partner at Fahrenheit, will replace him on the board; Fahrenheit recently acquired Celsius' assets.
  • Despite the board change, Arrington maintains support for the deal and Fahrenheit's ongoing advisory role in Celsius.
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Michael Arrington, founder of Arrington Capital, announced his resignation from the board overseeing the bankruptcy plan of the now-defunct crypto lender Celsius.

“I will no longer be on the board of directors of the new company. Instead, Ravi Kaza, my partner at Fahrenheit, will take the seat. Ravi is an investor and advisor to Arrington Capital,” he stated.

Arrington Asserts Departure Was Voluntary

In a recent X (formerly Twitter) post, Michael Arrington cited disagreements over the board’s composition, especially regarding board observers, as his reason for departing the Celsius bankruptcy proceedings.

However, he remained secretive, avoiding delving into the specifics of the change:

“I am not able to go into much detail on why I requested this change, but that information will come out in due time. This statement was heavily edited by attorneys.”

A court filing on September 23 visibly confirmed the change, with Arrington being replaced by Ravi Kaza.

Court Filing In The US Bankruptcy Court of New York. Source: Stretto
Court Filing In The US Bankruptcy Court of New York. Source: Stretto

Uncertainty Looms as Time Ticks for Celsius Victims

Meanwhile, Arrington hinted at his continued involvement but with a less direct role:

“I still fully support the deal, and look forward to contributing in ways other than participating on the board of directors. Apart from not joining the board of directors, our investment and active advisory role via Fahrenheit will go on as planned.”

This follows Celsius obtaining permission from a US court to collect feedback from account holders, specifically regarding its transition into a new user-owned entity and the distribution of assets to customers.

On May 25, Fahrenheit, a group of investors led by Arrington, won the bid to acquire over $2 billion worth of Celsius’ assets.

In July 2022, Celsius voluntarily halted withdrawals. It fell victim to a market crash triggered by the Terra Luna ecosystem’s collapse.

The collapse prompted an investigation, resulting in Celsius CEO Alex Mashinsky facing seven criminal charges. On July 14, he entered a plea of not guilty to all seven counts.

In more recent news, Roni Cohen-Pavon, the former chief revenue officer of Celsius, reportedly pleaded guilty to four fraud charges. Similar to Mashinsky, Cohen-Pavon faced allegations of conspiracy, securities fraud, market manipulation, and wire fraud.

On September 15, reports revealed that Cohen-Pavon committed to cooperate with US authorities in their ongoing investigations.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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