Crypto Lender Celsius Gets Court Approval To Convert Altcoins Into BTC/ETH

Share IT

Key Takeaways

  • Celsius is permitted to sell or convert any cryptocurrencies, crypto tokens, or other crypto assets unrelated to BTC and ETH.
  • The process is not inclusive of tokens associated with Withhold or Custody accounts.

Celsius, the bankrupt cryptocurrency lender, has received approval to initiate the liquidation of its altcoins, paving the way for a distribution to its creditors. The distribution will exclusively consist of the two most widely used cryptocurrencies, bitcoin (BTC) and ether (ETH).

“Celsius will be selling all altcoins from all customers (except Custody and Withhold accounts) starting July 1 and will be converting them into Bitcoin and Ethereum,” Celsius tweet reads.

The decision was granted by Bankruptcy Judge Martin Glenn of the Southern District of New York following discussions between Celsius and the Securities and Exchange Commission (SEC). The SEC has recently emphasized that several less popular crypto tokens are considered securities, requiring regulatory authorization for their handling.

According to Judge Glenn’s ruling, Celsius is permitted to sell or convert any cryptocurrencies, crypto tokens, or other crypto assets unrelated to BTC and ETH. This process is slated to begin on or after July 1, 2023, and excludes tokens associated with Withhold or Custody accounts.

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 … to BTC or ETH commencing on or after July 1, 2023,” the ruling reads

Court documents reveal that the crypto lender controlled 90 million MATIC, 103 million ADA, 161,000 SOL, 3.3 million LINK, 1.8 million polkadot (DOT), 200,000 litecoin (LTC), and 106,000 AAVE on November 25, 2022. 

Celsius emphasized that it has maintained regular communication with the SEC and various state regulatory bodies regarding the planned cryptocurrency distribution under its bankruptcy plan. The company aims to ensure that all distributions adhere to federal and state laws and regulations, as stated in its filing.

Celsius had filed for Chapter 11 bankruptcy in July of the previous year, citing unfavorable market conditions. In a recent development, the crypto consortium Fahrenheit successfully won a bid to acquire Celsius Network, whose assets were previously valued at around $2 billion, as per court filings. Subsequently, Celsius submitted revised bankruptcy files on June 15, 2023.

Share IT
Saniya Raahath
Saniya Raahath

Can’t find what you’re looking for? Type below and hit enter!