Steven Kokinos to Lead Celsius 2.0 Rebuild Under Fahrenheit Holdings Plan

The cryptocurrency industry’s restructuring efforts reached a significant milestone as Steven Kokinos, former chief executive of Algorand, is positioned to become CEO of the reorganized entity that will assume operations from Celsius Network. Court filings revealed that Kokinos will chair a newly assembled board of directors for the as-yet-unnamed Delaware corporation referred to internally as NewCo, bringing his extensive entrepreneurial background to what could represent a pivotal moment in digital-asset lending platform recovery.

The proposed leadership structure emerged as creditors prepare to vote on a plan to transfer Celsius’ operations to Fahrenheit Holdings, which could facilitate the partial recovery of funds owed to affected stakeholders. This path forward reflects months of negotiation and represents a formal attempt to salvage value from the crypto lender’s bankruptcy, which commenced in July 2022 following the broader market downturn that year.

Industry Veteran Tapped for Celsius Restructuring

Steven Kokinos brings more than two decades of entrepreneurial and investment experience to the role. According to court documentation, his career spans founding and managing companies across internet infrastructure, cloud software, communications, and cryptocurrency sectors. His departure from Algorand in July 2022 preceded his investment involvement with Fahrenheit Holdings, which emerged as the primary bidder to acquire Celsius’ assets. The holding company counts US Bitcoin, a major mining operation, and Arrington Capital, a prominent hedge fund, among its principal partners.

Joining Kokinos on the board are Asher Genoot from US Bitcoin and Michael Arrington representing his namesake capital firm. This structure combines operational expertise with crypto-native investment knowledge, positioning NewCo to navigate the complex recovery and operational challenges ahead.

Creditors Gain Board Representation in Landmark Oversight Arrangement

A distinctive feature of the restructuring proposal involves direct creditor representation within the governance structure. Scott Duffy and Thomas DiFiore, who serve as co-chairs of Celsius’ creditor committee, will occupy board seats alongside other appointed directors. This arrangement—described in filings as following “lengthy discussions with the Committee’s legal and financial advisors”—grants creditors meaningful oversight of the reorganized entity’s strategic direction.

The creditor committee’s ability to appoint six of nine board members underscores their influence in shaping the recovery plan’s execution. Additional board members include Frederick Arnold, who chairs the holding company managing Lehman Brothers’ bankruptcy estate; Elizabeth LaPuma, who heads audit operations at WeWork; and Emmanuel Aidoo, an investment banker from Perella Weinberg who previously worked on the transaction.

Regulatory and Legal Context

The restructuring plan emerged against a backdrop of regulatory action against Celsius’ previous leadership. Former CEO Alex Mashinsky faced arrest in July 2023 on charges related to securities fraud and manipulation of the CEL token, with proceedings continuing despite his not guilty plea. The transition to new management under Kokinos represents a sharp break from the operational and regulatory failures that preceded bankruptcy proceedings.

Timeline for Creditor Approval and Path Forward

Cryptocurrency creditors held until late September 2023 to vote on the comprehensive reorganization plan. The restructuring proposal, once approved, would position Steven Kokinos and the assembled board to execute operational transition and pursue revenue-generating activities with the transferred assets. Whether the arrangement can restore investor confidence and generate meaningful recovery of frozen holdings remains a test case for the industry’s ability to manage major platform failures through structured bankruptcy processes.