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
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.
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