Michael Arrington, founder of Arrington Capital, has opted not to join the new board of directors being constituted following the bankruptcy proceedings of Celsius Network.
Court filings show his partner at investment consortium Fahrenheit, Ravi Kaza, will instead assume his seat of the recently formed public, regulatorily compliant, reporting company NewCo. Kaza is an advisor and angel investor at Arrington Capital.
Arrington, in a social media post, cited his undisclosed disagreements over the board’s composition as his reason for stepping back. However, he and his firm continue to support the Celsius restructuring and maintain an advisory role.
“I am not able to go into much detail on why I requested this change, but that information will come out in due time,” Arrington said. “I disagree with some of the decisions made around board constitution and, in particular, the board observers.”
Arrington did not immediately respond to Blockworks’ request for comment.
More than 95% of Celsius creditors voted in favor of the crypto lender’s bankruptcy plan, according to court documents filed Monday.
Read more: Celsius seeks ‘swift approval’ from court after bankruptcy plan vote
Filed in June, the updated bankruptcy plan follows a successful asset acquisition bid by Fahrenheit.
Comprising venture capital firm Arrington Capital and mining company US Bitcoin Corp, the consortium successfully countered an earlier bid by NovaWulf Digital Management — the firm overseeing the distribution of its liquid assets — to acquire the beleaguered crypto lender in May.
The asset acquisition bid by Fahrenheit, submitted for approval to a New York bankruptcy court, has been met with disapproval from certain creditors. Legal representative David Adler, of the firm McCarter & English, announced his intent to oppose the plan, accusing it of violating consumer lending laws and criticizing the consortium for poor communication.
Per the terms agreed upon by Fahrenheit, the new entity is set to inherit between $450 and $500 million in liquid crypto. Additionally, US Bitcoin Corp has plans to establish a range of crypto mining facilities, including a new 100-megawatt plant.
According to court documents, the new board will consist of nine directors and include notable names such as Asher Genoot, President of US Bitcoin Corp and Elizabeth LaPuma, a veteran financial advisor with more than 20 years of board experience.
With the board’s composition being a subject of negotiation among various stakeholders, including the Official Committee of Unsecured Creditors, the inclusion of two additional seats has been agreed upon.