Temperature Rising: SEC Puts the Brakes on Celsius Revamp Plan, Insider Reveals

"Crypto Services Business Faces Regulatory Hurdle as SEC Questions Assets of Bankrupt Lender Celsius"

A plan to establish a new cryptocurrency services company using the remaining assets of bankrupt lender Celsius has hit a roadblock with the U.S. Securities and Exchange Commission (SEC), according to an insider. The SEC, the Celsius Creditors Committee, and investment vehicle Fahrenheit are engaged in a back-and-forth regarding information about the assets held by the Celsius estate, the source informed CoinDesk. The SEC has requested additional information to make a determination, and it is now up to the committee to decide how to proceed.

Fahrenheit, which includes Arrington Capital, U.S. Bitcoin Corp., and Proof Group, recently obtained approval for its reorganization plan from a bankruptcy court. The plan involved distributing approximately $2 billion worth of bitcoin (BTC) and Ethereum’s ether (ETH) to creditors, along with equity in a new company. The new entity would oversee the Celsius bitcoin mining operations, stake Ethereum, monetize other illiquid assets, and explore new business opportunities, according to a filing. However, if this plan fails, the approved backup option is to wind down and liquidate Celsius’ assets.

Requests for comment from Fahrenheit and the Celsius Creditor Committee went unanswered, while the SEC declined to provide a statement.

Martin Reid

Martin Reid

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