TechCrunch founder Arrington steps down from new Celsius board over constitution disagreement
Arrington Capital founder Michael Arrington stepped down from his position as a board member of the new company that will take over the operations of bankrupt crypto lender Celsius.
Arrington revealed that Ravi Kava would replace him on the new company’s board. Kava is a partner at Fahrenheit and an investor and advisor at the Arrington-owned hedge fund, Arrington Capital. A Sept. 23 court filing has confirmed this change.
Arrington explains decision
In a Sept. 24 post on X (formerly Twitter), Arrington explained that he was leaving his position due to disagreements over board constitutions and board observers. The TechCrunch founder declined to provide additional information on why he left the board, saying his statement was “heavily edited by attorneys.”
Despite leaving the board, Arrington said he would continue to support the deal and participate in other ways apart from being on the board of directors. He added:
“Apart from not joining the board of directors, our investment and active advisory role via Fahrenheit will go on as planned.”
Meanwhile, community members have suggested that Arrington left the board due to the addition of Simon Dixon as an observer. Dixon is the CEO of Bnk to the Future and one of the largest creditors of the bankrupt company. He is one of the leading voices in the bankruptcy process and has proposed measures to help the defunct firm.
In a post on X, Dixon responded to Arrington, saying:
“One day, this story will be told by @FahrenheitHldg, as this is their election. For now, welcome to #NewCo board, Ravi. I wish you the best, Michael Arrington. Feel free to unblock me. No offence taken. Onwards & Upwards. Nothing but love from me.”
US Trustee objects to Celsius reorganization plan
Meanwhile, a Sept. 24 court filing showed that the U.S. Trustee objected to the reorganization plan filed by Celsius.
The U.S. Trustee stated that Celsius’s plan contains “release and exculpation provisions that are
overbroad and contain prospective parties and activities” despite the revision recommendations it made to the company.
Due to this, the U.S. Trustee said it “reserves all rights, claims, arguments, defenses, and
remedies with respect to confirmation of the Plan.”
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