Celsius' Path to Recovery Hindered by SEC Challenges: Report

Crypto News
Crypto News

20 Nov 2023 9:09 PM

Bankrupt cryptocurrency lending company Celsius’ recovery plan has hit a road block with the US Securities and Exchange Commission....

  • Celsius, a bankrupt cryptocurrency lending company, is facing obstacles in its recovery plan due to the US Securities and Exchange Commission (SEC) requesting more information about its assets.
  • The SEC, Celsius Creditors Committee, and investment vehicle Fahrenheit are engaged in an exchange of information regarding the assets held by the Celsius estate.
  • Fahrenheit aims to issue shares for a new crypto business using Celsius' remaining assets, but the SEC's request for more information may impact the committee's decision.
  • The details of Fahrenheit's staking operation may unfold gradually, and regulatory scrutiny from the SEC is expected.
  • Celsius initiated Chapter 11 bankruptcy proceedings in July 2022 after revealing a $2 billion deficit in its balance sheet.
  • Fahrenheit's proposal for Celsius included distributing $2 billion worth of Bitcoin and Ethereum to creditors and forming a new company to oversee bitcoin mining operations, stake Ethereum, monetize illiquid assets, and explore new business opportunities.
  • The SEC expressed concerns about Celsius' plans, particularly its role as an unregistered broker, but Celsius indicated engagement in meetings with the SEC and other regulatory bodies.

The sentiment of the article is negative, as it highlights the obstacles faced by Celsius in its recovery plan and the regulatory scrutiny from the SEC.

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You May Ask

What is the main obstacle faced by Celsius in its recovery plan?Who is involved in the exchange of information regarding Celsius' assets?What is Fahrenheit's plan for the remaining assets of Celsius?Why did Celsius initiate Chapter 11 bankruptcy proceedings?What concerns did the SEC express about Celsius' plans?

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