The Securities and Exchange Commission (SEC) has posed a hurdle in Celsius‘s path to recovery by requesting additional information regarding the assets of the crypto lender currently navigating bankruptcy.
The regulatory discussions involve the SEC, the Celsius Creditors Committee, and the Fahrenheit Group.
According to an insider, “My understanding is that the SEC asked for more information to make a determination.” This suggests that the SEC is specifying the information they require from the committee to assess different aspects of the business.
The committee is now tasked with deciding how to respond to these requests.
Celsius filed for Chapter 11 bankruptcy protection in July 2022 after a revelation of a $2 billion deficit in its balance sheet. A recent development on November 9 saw a New York judge approve a plan for Celsius to settle its debts using a new mining firm.
In this plan, Fahrenheit Group would supervise the disbursement of $2 billion worth of bitcoin and ether to the creditors. However, the SEC’s approval is crucial for the execution of this move.
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