Celsius Debtors File to Swap Altcoins to Bitcoin or Ethereum

• Celsius debtors want to swap all altcoins in their possession to BTC or ETH.
• The filing requests the debtors to begin the sales of their holdings from July 1, 2023.
• Celsius holds up to $141 million worth of altcoins on the EVM chain.

Celsius debtors have filed in court to have the ability to swap all altcoins in their possession to Bitcoin (BTC) or Ether (ETH). The debtors made the filing on June 14, 2023, to the United States Bankruptcy Court, Southern District of New York. According to reports, the filing requests the debtors to begin the sales of their holdings from July 1, 2023.

Lookonchain, the smartmoney on-chain analysis platform, revealed that Celsius holds up to $141 million worth of altcoins on the Ethereum Virtual Machine (EVM) chain. Lookonchain listed 651 million CEL worth $73 million, 3.1 million LINK worth $16 million, 21 million MATIC worth $12.6 million, 7.9 million TGBP worth $9.6 million, and 2.97 million SNX worth $5.4 million as part of the Celsius debtors’ holdings.

Reportedly, the filing exempts tokens held in Withhold or Custody accounts and would not also affect any creditor claims. The debtors indicated that they would try to maximize the currency conversion whenever the opportunity arises.

According to the debtors, the main reason behind this move includes paying out cryptocurrency to creditors. These payments will be in the form of BTC and ETH, except in circumstances where such options are limited. In the process of execution, there will be a regular update on the token conversion. That will be included in the monthly budget and coin reports.

Celsius, a defunct crypto money lender, filed for bankruptcy in July 2022. Before the filing, Celsius froze withdrawals for customers in June, citing “extreme market conditions.” In January 2023, a federal bankruptcy judge ruled in favor of Celsius over cryptocurrencies deposited into interest-bearing accounts on the network. With the verdict, Celsius claimed ownership of up to $4.2 billion in cryptocurrencies that users deposited into its high-interest Earn program.