Celsius recovery plan hits road block at the SEC: report

Quick Take

  • The SEC wants more information about Celsius’s bankruptcy recovery plan, CoinDesk reported, citing a source familiar with the matter. 

The recovery plan for Celsius hit a road block at the Securities and Exchange Commission, with the regulator wanting more information about the bankrupt crypto lender's assets, CoinDesk reported, citing a source familiar with the matter.

The conversations include the SEC, the Celsius Creditors Committee and Fahrenheit Group.

"My understanding is that the SEC asked for more information to make a determination," CoinDesk cited the source as saying. "The way I'm interpreting it is the SEC is telling the committee what they want to see for various parts of the business, and now the committee has to decide what they're going to do with that information."

Bankruptcy protection


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The firm filed for Chapter 11 bankruptcy protection in July 2022 after it was revealed to have a $2 billion hole in its balance sheet. 

On Nov. 9, a New York judge approved a plan for Celsius to pay off its debt through the use of a new mining firm, in which Fahrenheit Group would oversee the payment of $2 billion worth of bitcoin and ether to creditors. However, the move had to be approved by the SEC, The Block previously reported. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.


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