Celsius debtors can start converting Altcoins to Bitcoin and Ether from today

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Source: Adobe/Canva

The United States Bankruptcy Court for the Southern District of New York has granted permission to debtors Celsius to exchange their altcoins for Bitcoin and Ether starting today.

The order issued by Bankruptcy Judge Martin Glenn on June 30 will also help distribute funds to creditors in the near future.

The proposal to sell and trade cryptocurrencies was approved after discussion with Celsius and the US SEC.

The order does not allow the sale or exchange of tokens associated with holding or custodial accounts. Celsius filed for bankruptcy following the collapse of Terra on July 13, 2022, as it disclosed a liability of $10 billion.

Celsius gets new owners

Crypto Fahrenheit Consortium acquired bankrupt crypto lending platform Celsius on May 25, 2023.

Fahrenheit has announced its intention to draw up a revised bankruptcy plan for Celsius Network.

However, the details of these plans have not yet been made public. The latest decision makes it clear that the owners will exclusively distribute assets in Bitcoin and Ether.

Fahrenheit won the bid to acquire Celsius Network’s institutional loan portfolio, staked cryptocurrencies, mining unit and other investments.

According to the decision, the new company will receive between $450 million and $500 million in liquid cryptocurrencies.

Following its acquisition, Celsius is seeking to negotiate and file a new plan sponsor agreement with Fahrenheit and a relief plan sponsor agreement with BRIC.

The crypto lending company will also file a revised Chapter 11 plan and disclosure statement following bankruptcy court approval.

The decision to allow debtors on the Celsius network to convert altcoins into Bitcoin and Ether comes amid the US SEC’s ongoing crackdown on crypto exchanges and altcoins.

The financial regulator has so far classified more than 160 cryptocurrencies as securities, including Cardano, Polygon and Solana. Since then, many crypto companies have decided to convert their altcoin holdings to Bitcoin and Ether.

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