The US Securities and Exchange Commission (SEC) has blocked the cryptocurrency credit company Celsius from creating new crypto services. It has been reported that the SEC has requested more information about the assets of Celsius, the former cryptocurrency credit company that is undergoing bankruptcy and restructuring.
It was stated that the SEC has not yet reached a clear decision regarding the assets of Celsius and is seeking clarity on the information held between the investment vehicle Fahrenheit, which won a stock issuance competition for a new crypto venture in May this year, and the Celsius Creditors Committee.
The SEC has reportedly informed the committee about what they want to see for various sections of the business and now the committee needs to decide what to do with this information.
Fahrenheit, an investment vehicle that includes organizations such as Arrington Capital, US Bitcoin, and Proof Group, received approval for a restructuring plan from a bankruptcy court earlier this month. The Fahrenheit plan for Celsius, which is currently suspended, involved the distribution of approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) and the creation of a new company to distribute its shares.
It was stated that the new company would operate and further develop Celsius’ Bitcoin mining operations, stake ETH, earn from other illiquid assets, and explore new business opportunities. If this cannot be achieved, the approved backup plan was to liquidate all of Celsius’ assets.