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The U.S. Securities and Exchange Commission’s request for more information has paused Fahrenheit’s plan to revive bankrupt crypto lender Celsius, highlighting the ongoing regulatory challenges in the crypto sector.
Fahrenheit, an investment group, had a plan to create a new crypto business from what’s left of bankrupt crypto lender Celsius, however, the U.S. Securities and Exchange Commission (SEC) is now asking for more details, causing a <a href="https://www.coindesk.com/business/2023/11/20/celsius-revamp-plan-hits-speed-bump-with-sec-source/?utm_term=organic&amp;utm_campaign=coindesk_main&amp;utm_medium=social&amp;utm_source=twitter&amp;utm_content=editorial" data-type="link" data-id="https://www.coindesk.com/business/2023/11/20/celsius-revamp-plan-hits-speed-bump-with-sec-source/?utm_term=organic&amp;utm_campaign=coindesk_main&amp;utm_medium=social&amp;utm_source=twitter&amp;utm_content=editorial" target="_blank" rel="noopener noreferrer nofollow">delay</a>.
Fahrenheit, which includes groups like Arrington Capital, U.S. Bitcoin Corp. and Proof Group, won a competition to rebuild Celsius. The company got the <a href="https://crypto.news/fahrenheit-consortium-acquires-bankrupt-celsius-network/" data-type="link" data-id="https://crypto.news/fahrenheit-consortium-acquires-bankrupt-celsius-network/" rel="noopener noreferrer nofollow">go-ahead</a> from a bankruptcy court, but now the restructure has become inert due to SEC’s questioning.
The <a href="https://crypto.news/tag/sec/" data-type="link" data-id="https://crypto.news/tag/sec/" rel="noopener noreferrer nofollow">SEC</a> has requested more information on Celsius’s assets, thus slowing down the process.
You might also like: <a href="https://crypto.news/us-doj-freezes-alex-mashinskys-assets-in-celsius-case/" rel="noopener noreferrer nofollow"> US DOJ freezes Alex Mashinsky’s assets in Celsius case </a>
Fahrenheit’s initial plan was to disperse around $2 billion in Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) to the individuals Celsius owed money to, and also share in a new company. This new company would assist with running Celsius’s Bitcoin mining, investing in Ethereum, selling off underperforming assets and starting new projects.
For now, the initiative is paused due to further SEC information gathering. If Fahrenheit can’t move forward, the contingency plan is to sell off Celsius’s assets.
Read more: <a href="https://crypto.news/coffeezilla-rips-celsius-network-scandal-wide-open/" rel="noopener noreferrer nofollow"> Coffeezilla rips Celsius Network scandal wide open </a>

Celsius restructuring encounters obstacle due to SEC involvement

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