Bankrupt Celsius Can Convert Altcoins to BTC, ETH Starting July 1 Following SEC Talks

CoinDesk
CoinDesk

30 Jun 2023 2:22 PM

The sell-off precedes creditor distributions that will only be made in the two most popular cryptocurrencies....

  • Celsius, a bankrupt crypto lender, has been granted permission to start liquidating its altcoins.
  • The distribution to creditors will be made solely in bitcoin (BTC) and ether (ETH), the two most widely used cryptocurrencies.
  • The move was approved by Bankruptcy Judge Martin Glenn of the Southern District of New York after discussions with the Securities and Exchange Commission (SEC).
  • The SEC has stated that certain less-used crypto tokens are considered securities and require regulatory approval.
  • Celsius will sell or convert any non-BTC and non-ETH cryptocurrencies to BTC or ETH starting from July 1, 2023.
  • The company has been in dialogue with the SEC and state regulatory agencies to ensure compliance with federal and state laws.
  • Celsius, which collapsed in July 2022 and was approved for sale to crypto consortium Fahrenheit, is preparing an updated bankruptcy plan that will primarily involve distributions of BTC or ETH to creditors.
  • The SEC has taken action against major crypto exchanges, claiming that tokens linked to Polygon (MATIC), Near (NEAR), and Cardano (ADA) fall under securities regulation.
  • The SEC's claims have caused delays in the wind-down of bankrupt crypto lender Voyager, leading to the withdrawal of Binance.US's offer to buy Voyager's assets.

The sentiment of the article is neutral.

Go to publisher site

You May Ask

What cryptocurrencies will Celsius distribute to its creditors?When will Celsius start selling or converting non-BTC and non-ETH cryptocurrencies?Who approved Celsius' move to liquidate its altcoins?What action has the SEC taken against major crypto exchanges?Why did Binance.US withdraw its offer to buy Voyager's assets?

Suggested Reads