Court Allows Celsius Network To Convert Altcoins to BTC or ETH

• The court ordered that the aforementioned altcoins be liquidated on or after July 1.
• The proposal was approved post consultation with Celsius and U.S SEC.

The bankruptcy court has approved Celsius Network’s plan to convert all assets held in cryptocurrencies into Bitcoin and Ethereum. Judge Martin Glenn of the Southern District of New York has rendered a fresh judgment in the platform’s bankruptcy proceedings. And the liquidations will soon allow for the release of payment to creditors.

One of the first companies to fail last year was Celsius Network. It was hit hard by the collapse of Terraform Labs and the devaluation of Terra (LUNA) and TerraUSD (UST), the tokens linked with it. Although Celsius Network’s bankruptcy declaration was filed a long time back. Creditors have not yet received closure, and the most recent decision has introduced new legal arguments.

Classification of Securities

The court ordered that the aforementioned altcoins be liquidated on or after July 1 in preparation for the distribution of assets to creditors. Following consultation between Celsius Network representatives and the United States SEC, the proposal was approved.

Due to the SEC’s recent crackdowns, several of the leading cryptocurrencies have been classified as securities. Thus, necessitating their consolidation into BTC and ETH. Cardano (ADA), Solana (SOL), and Polygon (MATIC) are just a few of the cryptocurrencies that have been branded by the authority.

Creditors are still around, although the sale of Celsius Network to the cryptocurrency consortium Fahrenheit was approved in May.

The new owners have revealed their intentions to file for bankruptcy under new guidelines. The Fahrenheit coalition will not distribute the assets in any cryptocurrency other than Bitcoin and Ethereum, albeit the specifics of these plans are still unclear.

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