Celsius debtors are now able to exchange their alternative currencies for Bitcoin and Ether thanks to a decision by the Southern District of New York of the United States Bankruptcy Court. The order made by bankruptcy judge Martin Glenn on June 30th will also aid in the quick distribution of monies to creditors.
Following the conversation with Celsius and the US SEC, the proposal to sell and exchange cryptocurrencies was approved. Tokens linked to Withhold or Custody accounts cannot be sold or traded under the order. Following Terra’s collapse on July 13, 2022, Celsius announced $10 billion in obligations and filed for bankruptcy.
On May 25, 2023, the bankrupt cryptocurrency loan platform Celsius was bought by the crypto consortium Fahrenheit. Fahrenheit has made known that it intends to create a new bankruptcy strategy for Celsius Network.The specifics of these proposals, however, have not yet been made public. The most recent decision makes it clear that the owners will only distribute the assets in Bitcoin and Ether.
Fahrenheit won the offer to purchase the Celsius Network’s institutional loan portfolio, staked cryptocurrency, mining unit, and other investments.
According to the verdict, the new business will receive between $450 million and $500 million in liquid cryptocurrency. Following the acquisition, Celsius is seeking to negotiate and submit a new plan sponsor agreement with Fahrenheit and a backup plan sponsor agreement with BRIC.
Following bankruptcy court permission, the crypto lending company will also submit a revised Chapter 11 plan and disclosure statement.The US SEC’s continuing assault on cryptocurrency exchanges and altcoins led to the decision to permit the debtors of the Celsius network to convert their altcoins to Bitcoin and Ether.
The financial regulator has so far designated over 160 cryptocurrencies, including Cardano, Polygon, and Solana, as securities. Since then, a lot of cryptocurrency businesses have made the decision to switch their holdings from altcoins to Bitcoin and Ether.