TechCrunch Founder Michael Arrington Steps Down from Celsius Board Amid Constitution Disagreement

In a surprising turn of events, Michael Arrington, the founder of Arrington Capital and a prominent figure in the tech industry, has resigned from his position as a board member of the new company set to take over the operations of the financially troubled crypto lender, Celsius. Arrington disclosed that Ravi Kava would be his successor on the board of the new company, a change that has been officially confirmed in a court filing dated September 23. Arrington's decision to step down was elucidated in a post he made on X (formerly Twitter) on September 24. He cited disagreements related to board constitutions and the presence of board observers as the reasons for his departure. However, he refrained from providing further details, mentioning that his statement had been "heavily edited by attorneys." Despite his withdrawal from the board, Arrington expressed his continued support for the deal and his intention to contribute in other capacities apart from serving as a board member. He stated: "Apart from not joining the board of directors, our investment and active advisory role via Fahrenheit will go on as planned." Interestingly, there have been suggestions from the crypto community that Arrington's resignation may be linked to the addition of Simon Dixon as a board observer. Dixon is the CEO of Bnk to the Future and is also one of the largest creditors of the now-bankrupt Celsius. He has played a prominent role in the bankruptcy proceedings, proposing measures to assist the defunct company. Dixon, in response to Arrington's departure, posted on X, 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." In the midst of these developments, a court filing dated September 24 revealed that the U.S. Trustee had raised objections to the reorganization plan presented by Celsius. The U.S. Trustee expressed concerns about the plan's "release and exculpation provisions" being overly broad and encompassing prospective parties and activities, despite prior recommendations for revisions made to the company. Consequently, the U.S. Trustee declared its intention to reserve all rights, claims, arguments, defenses, and remedies concerning the confirmation of the Plan. These recent developments highlight the complexities surrounding the reorganization efforts and the evolving dynamics in the crypto lending sector, with key stakeholders like Arrington and Dixon playing significant roles in shaping the future of Celsius.