Celsius to convert its altcoins to bitcoin and ether
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Bankrupt crypto lender Celsius Network has been granted permission to convert its altcoin holdings into bitcoin (BTC) and ethereum (ETH). The move will allow the company to distribute funds to its creditors in the two most widely used cryptocurrencies.
Celsius Network, a bankrupt crypto lender, has been approved by the US Bankruptcy Court for the Southern District of New York to convert its altcoins into bitcoin or ether.
The court order, issued by Judge Martin Glenn on June 30, allows Celsius to sell all its altcoins starting July 1, 2023.
The decision to convert altcoins to bitcoin or ethereum is a strategic move by Celsius as it seeks to maximize the value of its assets, as BTC and ETH are the two most liquid cryptocurrencies. Converting its altcoins to these two assets will allow Celsius to generate more liquidity and improve its chances of repaying the numerous victims of its misfortune.
The court order also allows Celsius to use commercially reasonable efforts to maximize the value of the altcoins that it cannot sell at the moment. This means that Celsius could potentially hold onto some of its altcoins hoping that their prices will recover.
The approval to convert altcoins or sell their cryptocurrency assets, except for tokens linked to Withhold or Custody accounts, is a positive development for Celsius as it seeks to restructure its business and emerge from bankruptcy.
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