Arrington Capital founder Michael Arrington has announced he has stepped down from the board looking after the bankruptcy plan of the 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 noted.
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 modification, with Arrington being replaced by Ravi Kaza.
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.
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Source: https://beincrypto.com/michael-arrington-departs-board-celsius-bankruptcy/