Celsius' Revamp Stalled by SEC Hurdles: Insider Revelations

• An Obstacle in Establishing New Crypto Services from Defunct Celsius
• Scrutiny by the SEC
• Fahrenheit's Plan and the Recent Stall
• The envisaged new entity
• The Backup Plan

An Obstacle in Establishing New Crypto Services from Defunct Celsius

A grand vision of resurrecting a new crypto services enterprise from the remains of the collapsed lender, Celsius, has hit a roadblock, as per an individual in the know. The United States Securities and Exchange Commission (SEC) is currently involved in ongoing discussions about the specifics of the assets held by the now-defunct Celsius estate.

Scrutiny by the SEC

The deliberations involve the SEC, the Celsius Creditors Committee, and Fahrenheit, an investment entity that emerged victorious in a bid in May this year. Fahrenheit aimed to create a new crypto venture using the residual assets of the bankrupt lender. This informed source reported to CoinDesk that the SEC sought additional data before arriving at a decision. It appears that the SEC is indicating to the committee the specifics they are keen on examining pertaining to different facets of the business. It is now up to the committee to decide what to do with that information.

Fahrenheit's Plan and the Recent Stall

Fahrenheit, inclusive of Arrington Capital, U.S. Bitcoin$42,260 -0.64% Corp., and Proof Group, secured approval for its restructuring scheme from a bankruptcy tribunal earlier this month. However, their plan for Celsius, which suggested disbursing around $2 billion worth of bitcoin (BTC) and Ethereum$2,315 -2.42%'s ether (ETH) to creditors, in addition to equity in a new firm, has been put on hold.

The envisaged new entity

The proposed new entity was to manage and expand Celsius's bitcoin mining operations, stake Ethereum, liquidate other non-liquid assets, and explore new business opportunities, as outlined in a filing.

The Backup Plan

If this initiative fails, the approved contingency plan proposes the dissolution and sale of Celsius's assets.

When approached for comments, neither Fahrenheit nor the Celsius Creditor Committee provided a response. The SEC also refrained from commenting.

Edited by Jonathan Stoker