Bankrupt company Celsius can now convert its altcoins under management to Bitcoin (BTC) and Ether (ETH) thanks to a ruling from its bankruptcy court in New York. This operation could be a consequence of the offensive policy of the Securities and Exchange Commission (SEC) vis-à-vis certain cryptocurrencies which it considers to be financial securities.
Celsius follows the CSS talk
Last month, an American institution marked the international cryptocurrency industry: the Securities and Exchange Commission (SEC). The financial market regulator in the United States said that many altcoins, such as BNB, ADA, SOL and MATIC, considered as “securities”or securities.
In this context, the bankruptcy court for the Southern District of New York has just authorized the owners of Celsius convert altcoins from their platform to Bitcoin (BTC) and ether (ETH).
“ Debtors may, in consultation with the Committee’s advisors, sell or convert any non-BTC and non-ETH cryptocurrencies, tokens or other digital assets associated with custodial or custodial accounts (collectively “Altcoins”) into BTC or ETH since July. 1, 2023. »
As a reminder, in May 2023, the Fahrenheit consortium won the auction for the Celsius takeover. Therefore, the future holders of the platform, which previously specialized in cryptocurrency loans, plan to revise the initial bankruptcy plan of the platform, starting with this operation focusing directly on altcoins.
Celsius is not the only platform to withdraw from altcoins due to SEC attacks. Recently, the Révolut neobank is also stop offering certain cryptocurrencies after the actions of the American police.
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Return of Celsius bankruptcy
In 2022, investors experienced one of the biggest domino effects that could have happened in Web3. The company that brought down many of the companies behind it is Terraform Labs, whose two cryptocurrencies before it dropped in value by $40 billion.
The collapse of the Terra ecosystem (LUNA) led to the decline of cryptocurrency lender Celsius. In July 2022, after weeks of tension caused by multiple rumours, the US-based company eventually folded and filed for bankruptcy.
In addition to the general dissatisfaction with the platform’s suspension of withdrawals, Celsius’ situation in the cryptocurrency industry has worsened with several revelations. In addition, the company’s founder, Alex Mashinsky, $10 million was reportedly withdrawn from Celsius two months before filing for bankruptcy.
However, the worst was yet to come. Almost 4 days after this announcement, a 14,500-page document began circulating on the web. The latter collected the personal data of thousands of users, with their names, transactions and balances in cryptocurrencies.
Today, Celsius is trying to rise from its ashes with the possible takeover by Fahrenheit. If this operation is validated by American regulators, the platform will benefit from 400 to 500 million dollars in the form of cryptocurrencies, as well as new mining installations.
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Published by Editions Larousse
Source: New York Bankruptcy Court
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency related topics to as many people as possible.
Timothy Bourbotte
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