Fahrenheit’s proposal to restructure the bankrupt cryptocurrency lender Celsius has been stalled by the U.S. Securities and Exchange Commission’s (SEC) request for additional information, highlighting the ongoing regulatory challenges in the cryptocurrency industry. Fahrenheit, an investment consortium that includes Arrington Capital, U.S. Bitcoin Corp., and Proof Group, had won a bid to revive Celsius. Despite receiving approval from a bankruptcy court, the plan is now on hold due to the SEC’s inquiries.
The SEC is seeking more details about Celsius’s assets, which has slowed the process. Fahrenheit’s original strategy involved distributing approximately $2 billion in Bitcoin (BTC) and Ethereum (ETH) to Celsius’s creditors and establishing a new company. This new entity was intended to manage Celsius’s Bitcoin mining operations, invest in Ethereum, liquidate underperforming assets, and launch new ventures.
Currently, the project is at a standstill pending further information collection by the SEC. If Fahrenheit is unable to proceed, their alternative plan involves selling off Celsius’s assets.