The US Bankruptcy Court for the Southern District of New York has given new authorization to the bankrupt crypto lending platform Celsius Network. The court has permitted the crypto lending company to convert the altcoins in its possession to ETH or BTC. Judge Martin Glenn is responsible for issuing the respective decision. The liquidations will lead to the fund distribution to the creditors shortly after this approval.
Court Authorizes Celsius Network to Convert Altcoins into ETH or BTC
The official approval for the proposal was witnessed following the discussions carried out by the bankrupt crypto lending firm. Celsius conducted several discussions with the United States-based Securities and Exchange Commission (SEC) in this respect. According to the ruling given by the bankruptcy judge, the beleaguered lending platform has the authorization to do several things.
One of the approved activities is the conversion of any crypto, except the tokens dealing with Custody or Withhold accounts, into ETH or BTC tokens. The company is permitted to start doing this from the 1st of June this year. Celsius got entangled in the bankruptcy proceedings back in the last year. Moreover, this was seen after the crash of the Terra ecosystem in which the TerraUSD (UST) and Terra (LUNA) tokens collapsed. Since that time, the creditors of Celsius are waiting for a way out.
Crypto Crackdown Spree of SEC Compels Entities to Convert Their Altcoins
Recently, the securities regulator of the United States began a crackdown spree against crypto entities. The regulatory agency has categorized several crypto entities as securities. Keeping this in view, several crypto platforms are endeavouring to transform their altcoins into the top crypto assets ETH and BTC. The prominent altcoins categorized as securities include Polygon (MATIC), Solana (SOL), and Cardano (ADA).
Trending Today: Gold Bounces Off $1,910 to Trade Above the 100-Hour MA
Notwithstanding the current bankruptcy proceedings of Celsius, the crypto consortium named Fahrenheit recently purchased the firm in May. In this way, the new owners are now responsible for running the platform. The latest owners have declared their intention to create a revised bankruptcy strategy.
Though they have not revealed the respective plans’ minutes, it is now clarified that the new owners will dispense assets in Ether and Bitcoin. After the bankruptcy of the Celsius Network, firms like FTX and Voyager Digital witnessed financial issues. Moreover, this led to delving into the exclusive plans to deal with the creditor demands dealing with reimbursement.