Celsius Network Granted Approval to Enable Altcoin Conversion into BTC or ETH

The United States Bankruptcy Court for the Southern District of New York has granted Celsius Network, a bankrupt crypto lender, the green light to convert its altcoins into Bitcoin (BTC) and Ether (ETH). The approval came from Judge Martin Glenn, and it signifies a significant step towards resolving the lender’s financial situation and distributing funds to creditors.

The decision was reached after discussions between Celsius and the U.S. Securities and Exchange Commission (SEC). According to the bankruptcy judge’s order, Celsius is now permitted to sell or convert its cryptocurrency assets, excluding tokens associated with Withhold or Custody accounts, into BTC or ETH starting from July 1, 2023.

Celsius Network faced bankruptcy in 2022 following the collapse of the Terra ecosystem and its associated tokens, Terra (LUNA) and TerraUSD (UST). The bankruptcy filing left creditors awaiting resolution, but with the recent approval, new possibilities have emerged, and the proceedings have been extended.

In the midst of the SEC’s intensified scrutiny of altcoins, many crypto companies have opted to convert their altcoins into BTC and ETH. The SEC has classified several notable altcoins, including ADA, SOL, and MATIC, as securities.

Despite the ongoing bankruptcy proceedings, Celsius Network was acquired by the crypto consortium Fahrenheit in May 2023. Under the new ownership, Celsius operates with a fresh perspective. The new owners have expressed their intent to develop a revised bankruptcy plan, although specific details have not been disclosed yet. However, it is now clear that the assets will be distributed exclusively in Bitcoin and Ether.

The bankruptcy of Celsius Network has also affected other companies, such as Voyager Digital and FTX, leading them to explore innovative strategies to address creditor demands for reimbursement.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you