SEC Delays Formation of New Crypto Services Business from Bankrupt Celsius Lender

According to CoinDesk, the plan to create a new crypto services business from the remains of bankrupt lender Celsius has encountered a delay with the U.S. Securities and Exchange Commission (SEC). A source familiar with the situation revealed that there is an ongoing exchange of information regarding assets held by the Celsius estate between the SEC, the Celsius Creditors Committee, and investment vehicle Fahrenheit. Fahrenheit, which includes Arrington Capital, U.S. Bitcoin Corp., and Proof Group, won a bidding contest in May to issue shares in a new crypto business built on the bankrupt lender's remaining assets. Fahrenheit's plan for Celsius, which has been temporarily stalled, involved distributing approximately $2 billion worth of bitcoin (BTC) and Ethereum's ether (ETH) to creditors, as well as equity in a new company. The new entity would manage and expand Celsius' bitcoin mining operations, stake Ethereum, monetize other illiquid assets, and develop new business opportunities, according to a filing. If this plan fails, the approved backup plan involves winding down and liquidating Celsius' assets. Neither Fahrenheit nor the Celsius Creditor Committee responded to requests for comment, and the SEC declined to comment.