Celsius granted court approval to convert altcoins into Bitcoin and Ethereum News ▸ US ▸ Celsius ▸ Bitcoin ▸ Bankruptcy
Celsius granted court approval to convert altcoins into Bitcoin and Ethereum
The Court further ordered that Bitcoin or Ethereum were the only cryptocurrencies that could be used to pay out creditor claims.
1 min read
Updated: Jun. 30, 2023 at 6:13 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt crypto lender Celsius Network has been authorized by the bankruptcy court to sell all of its altcoins for Bitcoin (BTC) and Ethereum (ETH), effective tomorrow, July 1, as stated in a June 30 court filing.
“[Celsius] may sell or convert any non-BTC and non-ETH cryptocurrency, crypto tokens, or other cryptocurrency assets other than such tokens that are associated with Withhold or Custody accounts (collectively, the “Altcoins”) to BTC or ETH commencing on or after July 1, 2023.”
The bankrupt crypto firm revealed that it held discussions with the Securities and Exchange Commission (SEC) due to the recent regulatory actions that classified several digital assets, including MATIC, SOL, ADA, and more, as securities.
Following these discussions, Judge Martin Gleen approved Celsius to “use commercially reasonable efforts to maximize the value of the Altcoins to be sold or converted to BTC or ETH.”
The Court also ordered the bankrupt firm to submit a monthly “Budget and Coin Report” showing the number of Altcoins converted to BTC and ETH, adding that Celsius can only distribute cryptocurrencies to creditors in the top two cryptocurrencies alone.
Data from Arkham Intelligence showed that Celsius holds a substantial amount of “altcoins” worth $187.04 million, including assets such as BNB, Celsius, MATIC, FTT, AVAX, and others.
Meanwhile, the lender also holds $409.03 million worth of BTC and ETH.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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Celsius Network is a P2P decentralized lending & borrowing platform.
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Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.