Cryptocurrency lending company Celsius has announced a restructuring plan that will shift its focus solely to Bitcoin mining following feedback from the U.S. Securities and Exchange Commission (SEC).
During the restructuring process, Celsius revealed that some assets previously intended to be transferred to an entity called “Fahrenheit NewCo” will now be retained by the company. They plan to make the “Mining NewCo” entity publicly traded in the United States and owned by Celsius customers.
Celsius had filed for Chapter 11 bankruptcy protection in the Southern District of New York in July 2022 after temporarily suspending withdrawals from its platform. In July 2023, the SEC filed a lawsuit against Celsius and its former CEO, Alex Mashinsky, accusing the former CEO of falsely promoting a safe investment through the company’s Earn Interest program.
U.S. Department of Justice authorities arrested Mashinsky in July, charging him with securities fraud, commodity fraud, and wire fraud related to allegations of deceiving customers. As of the time of writing, Mashinsky remains free on a $40 million bail, with his trial scheduled to commence in September 2024.