The ambitious plan of the bankrupt crypto lending company Celsius to create new crypto services from its ashes has been hindered by the US Securities and Exchange Commission (SEC). According to a source close to the matter, the SEC has requested more information about the assets of the former crypto lending company that is undergoing restructuring through bankruptcy.
A source speaking to CoinDesk stated that the SEC has not reached a clear decision regarding the information about Celsius’ assets held by Celsius between the Celsius Creditors Committee and Fahrenheit, an investment vehicle that won a bidding competition in May of this year to issue shares in a new crypto venture built on the remaining assets of the bankrupt lender.
The person in question said, “As far as I understand, the SEC has requested more information to make a decision. My interpretation is that the SEC has told the committee what they want to see for various parts of the business and now it is up to the committee to decide what to do with this information.”
Fahrenheit’s Halted Celsius Plan
Fahrenheit, an investment vehicle that includes Arrington Capital, U.S. Bitcoin, and Proof Group, had obtained approval from a bankruptcy court earlier this month for a restructuring plan.
Fahrenheit’s plan for Celsius, which is currently on hold, involved distributing approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) to creditors, as well as establishing a new company and distributing shares of this company.
According to a document submitted to the court, the new company would operate and further develop Celsius’ Bitcoin mining operations, stake ETH, earn money from other illiquid assets, and explore new business opportunities. If this fails to materialize, the approved backup plan is to liquidate all of Celsius’ assets.
