Celsius Network Approved to Convert Altcoins Into BTC & ETH
• The United States Bankruptcy Court for the Southern District of New York has approved Celsius Network’s plan to convert its altcoins into Bitcoin and Ether.
• The liquidations will pave the way for the distribution of the funds to creditors in the near future.
• Celsius was recently purchased by the crypto consortium Fahrenheit, and plans are underway to develop a revised bankruptcy plan exclusively distributing assets in BTC & ETH.
Celsius Network Approved To Convert Altcoins Into BTC & ETH
The United States Bankruptcy Court for the Southern District of New York has approved bankrupt crypto lender Celsius Network’s plan to convert its altcoins into Bitcoin (BTC) and Ether (ETH). The order was issued by Judge Martin Glenn, and the liquidations will pave the way for the distribution of the funds to creditors in the near future.
Discussions With SEC
The proposal was officially approved after discussions between Celsius and the U.S. Securities and Exchange Commission (SEC). As per the bankruptcy judge’s ruling, Celsius is authorized to sell or convert any cryptocurrency assets, excluding tokens associated with Withhold or Custody accounts, into BTC or ETH starting from July 1, 2023.
Celsius Filed For Bankruptcy
Celsius faced bankruptcy in 2022 following its involvement with Terra ecosystem and its Terra (LUNA) and TerraUSD (UST) tokens. Despite filing months ago, a recent verdict has introduced new possibilities and extended proceedings.
Altcoin Conversions Amid SEC Crackdown
Amidst a recent crackdown on altcoins by SEC which classified them as securities, many crypto companies have decided to convert them into Bitcoin or Ether. Notable altcoins labeled as securities include Cardano (ADA), Solana (SOL), Polygon (MATIC).
New Ownership Of Celsius Network
Despite ongoing bankruptcy proceedings, Celsius was recently purchased by crypto consortium Fahrenheit in May 2023 and now operates under their stewardship. Plans are underway to develop a revised bankruptcy plan exclusively distributing assets in Bitcoin & Ether upon completion of proceedings.