Celsius Restructuring Plan Temporarily Frozen
Date: 2023-11-22 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Regulatory Hurdles and Stalled Negotiations
A source familiar with the situation revealed that the plan to restructure and launch a new crypto service model faced obstacles. These hurdles seemed to arise from the U.S. Securities and Exchange Commission (SEC). Negotiations between the regulatory body, Celsius's creditors' committee, and the investment organization Fahrenheit, which won the bid to issue shares for the new business, have stalled. They've failed to reach a mutual understanding.
According to a CoinDesk source, there are specific issues in clarifying the real assets held by Celsius. "As far as I understand, the SEC requested additional information for their decision-making process," said an unnamed individual. "I interpret this as the Commission indicating to the Committee what kind of picture they want to see across various areas of the business. Now, the organization has to figure out what to do with this information."
Reorganization and Investment Approval
Fahrenheit, the investment firm comprising Arrington Capital, US Bitcoin Corp., and Proof Group, obtained court approval for the reorganization plan in early November 2023. This plan involved distributing holdings in Bitcoin (BTC) and Ethereum (ETH) worth around $2 billion among creditors and securing a stake in the new company.
The new entity is set to manage and expand Bitcoin mining operations, engage in Ethereum staking, monetize other illiquid assets, and explore new opportunities. However, the progress of these ideas has come to a standstill. At the time of reporting, neither the U.S. Securities and Exchange Commission nor representatives from Celsius or Fahrenheit have issued comments regarding the information disclosed to CoinDesk journalists.
