Insolvents Celsius Network can convert old coins into Bitcoin and Ethereum
Insolvents Celsius Network can convert old coins into Bitcoin and Ethereum
Insolvente's cryptocurrency finance company Celsius Network receives green light for Altcoin exchange
The insolvent cryptocurrency provider Celsius Network has received green light from the US insolvency court for the southern district of New York to exchange its own old coins for Bitcoin and ether. Judge Martin Glenn decided that Celsius will be able to convert all cryptocurrencies except Bitcoin and Ethereum on the market into the two leading electronic assets.
The approval was officially granted after discussions between Celsius and the US Securities and Exchange Commission (SEC). The fighting financial company can now market or even exchange its old coins. In addition, Celsius is obliged to use "commercially realistic techniques" in order to increase the market value of the old coins, which are to be converted into Bitcoin or ether. In addition, monthly reports on the number of traded altcoins must be transmitted to the company.
Celsius fell into bankruptcy after the Terra network and its own terra (Luna) and Terra USD (VAT) token failed in 2022. The company then became the subject of an investigation, in which it was referred to as the "Ponzi plan". Letitia James, the Attorney General of New York, submitted a lawsuit against the then CEO Alex Mashinsky in early 2023, in which she accused him of incorrectly informed real estate investors. Mashinsky rejected the allegations as incorrect.
Although the bankruptcy has been a few months ago, the financial institutions are still waiting for a reaction. The decision of the bankruptcy court extended the procedure and opened additional options to the defaulting of the Celsius system. The ongoing examination of the SEC regarding cryptocurrency swaps and old coins has led Celsius to convert his old coins into Bitcoin and Ether.
The financial supervisory authority has so far identified around 160 cryptocurrencies as protective measures, including Cardano, Polygon and Solana. Many cryptocurrency agencies have therefore decided to change their stocks of old coins into Bitcoin and Ether.
On May 25, 2023, Celsius, the insolvent cryptocurrency finance company, was adopted by Fahrenheit. It was announced that a new bankruptcy proceedings for Celsius Network are planned. However, details of these plans have not yet been published. Fahrenheit intends to easily convert the possessions into ether and to achieve institutional financing and other expenditure of the Fahrenheit network by the new company The After. The after was ready to invest between $ 450 and $ 500 million in cryptocurrencies. After the approval of the insolvency court, the crypto -loan will make a modified disposal.
With the approval of the Altcoin exchange, Celsius Network and his creditors can hope to quickly forward money to the financial institutions and to advance the insolvency proceedings. The decision of the bankruptcy court enables Celsius to convert his old coins into Bitcoin and Ether and thus use alternative liquidity options. The future of the insolvent cryptocurrency finance company remains to be seen, but with this permit there is new hope.