Altcoin holders who owe money in Celsius will be able to convert their altcoins into Bitcoin and Ether starting July 1, according to a recent New York court ruling.
Celsius, the company that declared Chapter 11 bankruptcy protection in July 2022, acknowledging its significant debts of up to $10 billion, has temporarily halted withdrawals before filing for bankruptcy.
Since then, Celsius has been actively cooperating with regulatory authorities to facilitate the payment of funds to debtors.
Now, with the court’s decision, the individuals who are owed the money can initiate a process Convert their digital currencies into Bitcoin and Ethergiving them the opportunity to recover their assets.
Centennial Regulatory Discussions and Altcoin Transformation
In light of regulatory developments that have classified various digital assets, such as MATIC, SOL, ADA, and others, as securities, cryptocurrency firm Celsius revealed that it has been in discussions with the US Securities and Exchange Commission (SEC).
These discussions aim to address the implications of the regulatory actions on the Company’s operations.
In an important development, Judge Martin Glenn, V filing On June 30, Celsius was given the authority to make “commercially reasonable efforts” to maximize the value of digital currencies held by the company.
Bitcoin nearing the halfway mark to $31K on the weekend chart at TradingView.com
These altcoins can now be sold or converted into Bitcoin (BTC) or Ethereum (ETH). the A move approved by the court It allows Celsius to take advantage of the potential benefits associated with BTC and ETH.
Further, the court directed the bankrupt company to submit a monthly report known as the “Budget and Currency Report”.
This report will provide details on the number of cryptocurrencies converted into BTC and ETH. The court also determined that Celsius is only allowed to distribute cryptocurrencies to its creditors in the form of BTC and ETH, limiting the options to the top two cryptocurrencies.
These court-approved procedures and reporting requirements aim to ensure transparency and accountability in the asset transfer process while protecting the interests of the creditors involved.
Source: Adobe/Canva
Celsius Network acquired by the Fahrenheit Union
Amidst the ongoing bankruptcy proceedings, Celsius underwent a major development when it was acquired by the crypto consortium known as Fahrenheit. in May 2023.
Under the direction of the new owners, Celsius is set to embark on a new course with its revised bankruptcy plan. While the details of this plan have not yet been revealed, it has been made clear that the asset distribution will be done exclusively in Bitcoin and Ether.
This strategic decision could have implications for creditors and the company’s overall financial outlook.
Featured image from Shutterstock
