The US Securities and Exchange Commission’s request for more information has halted Fahrenheit’s plan to revive bankrupt cryptocurrency lender Celsius, highlighting current regulatory challenges in the cryptocurrency sector.
Fahrenheit, an investment group, had a plan to create a new cryptocurrency business from what remains of the bankrupt Celsius cryptocurrency lender, however the US Securities and Exchange Commission (SEC) is now requesting more details, which caused a delay.
Fahrenheit, which includes groups such as Arrington Capital, US Bitcoin Corp. and Proof Group, won a competition to rebuild Celsius. The company got the go-ahead from a bankruptcy court, but now the restructuring has become inert due to SEC questioning.
The SEC has requested more information about Celsius’s assets, thus slowing down the process.
Fahrenheit’s initial plan was to distribute around $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) to the people Celsius owed money to, and also share a new company. This new company would help manage Celsius’s Bitcoin mining, invest in Ethereum, sell underperforming assets, and start new projects.
For now, the initiative is on pause as the SEC gathers more information. If Fahrenheit cannot move forward, the contingency plan is to sell Celsius’ assets.
