In a significant development involving Celsius, Steve Kokinos, the former CEO of Algorand, is poised to take the reins of the crypto lender in the aftermath of its bankruptcy. This development was disclosed in a filing made on Friday before the US Bankruptcy Court for the Southern District of New York.

Additionally, prominent executives from WeWork, Lehman Brothers, and the mining giant US Bitcoin will join the Board of the company along with two members of Celsius’ committee of creditors. Currently, the fate of Celsius hangs in the balance as creditors decide whether to approve the sale of the company to Fahrenheit Holdings.

Celsius 2.0 Backed by Industry Heavyweights

Kokinos, the incoming CEO of the as-yet-unnamed Delaware-based corporation, referred to as NewCo in court filings, has experience in crypto and technology space. With more than 25 years of experience as an entrepreneur and investor, Kokinos has a diverse portfolio spanning internet infrastructure, cloud software, communication, and crypto. Previously, he left his position at Algorand in July 2022.

The other members of the Board of NewCo are Asher Genoot and Michael Arrington who are executives from the mining company US Bitcoin and the hedge fund Arrington Capital, respectively.

Frederick Arnold, the Chairman of the holding company overseeing the bankrupt Lehman Brothers; Elizabeth LaPuma, who is heading the audit committee at WeWork; and Emanuel Aidoo, an investment banker from Perella Weinberg, are among the appointees to the new entity.

Fahrenheit Holdings, a company backed by industry heavyweights including US Bitcoin, Arrington Capital, and Steve Kokinos, won the bid to rescue Celsius. Part of this plan requires taking over the company’s institutional loan portfolio, staked crypto assets, and Bitcoin mining units.

Celsius’ Former CEO Faces Legal Hurdles

Celsius’ has attempted to revive its operations against the backdrop of a legal battle involving its former CEO, Alex Mashinsky. In a recent report by Finance Magnates, Mashinsky is facing charges related to securities fraud and alleged manipulation of CEL tokens and has had his assets frozen by the court.

The assets subject to the freeze encompass a range of financial holdings, including corporate bank accounts and valuable property in Austin, Texas. These assets have reportedly come under investigation as authorities probe alleged wrongdoing connected to Celsius and its former CEO.

Mashinsky’s legal troubles began in July when he pleaded not guilty to fraud charges from various regulatory bodies, including the US Department of Justice (DOJ), the SEC, and the CFTC. Following his indictment, US Magistrate Judge Ona Wang allowed Mashinsky to secure his release on a $40 million bond.