Celsius will convert funds into Bitcoin and Ether to pay customers By CriptoFácil

2023-07-01 00:10:09

© Reuters Celsius will convert funds into Bitcoin and Ether to pay customers

CriptoFácil – Celsius received permission to start liquidating its altcoins this Friday (30). According to the court authorization, the lending platform will be able to sell its cryptocurrencies and start the payment process to customers.

This measure is part of the company’s new payment plan, which is preparing a distribution to creditors. Liquidation will take place because this distribution will only take place in the two most used cryptocurrencies: (BTC) and Ether (). Therefore, Celsius will convert all altcoins on its balance sheet into BTC or ETH.

Bankruptcy Judge Martin Glenn of the Southern District of New York approved Celsius’s proposed change. Glenn spoke with the United States Securities and Exchange Commission (SEC) and then cleared the conversion. Celsius will be able to start operations from the 1st of July.

And indeed, the SEC bears a lot of responsibility in creating Celsius’s plan. The municipality recently warned that several cryptocurrencies are securities whose handling needs regulatory approval. Therefore, Celsius decided to exchange its tokens for the only cryptocurrencies that did not fall under the agency’s scrutiny.

Celsius can sell altcoins

In the court decision, Judge Glenn stated that Celsius can sell or convert any cryptocurrency, tokens or other crypto assets other than BTC or ETH. It can also sell and convert tokens that are not associated with Hold or Custody accounts into BTC or ETH starting July 1, 2023

“The company has been in regular dialogue with the SEC and certain state regulatory agencies regarding the proposed distribution of cryptocurrency under the Plan to thereby ensure that all such distributions are in full compliance with applicable federal and state laws,” he added. the judge.

The Celsius collapse occurred in July 2022, in the wake of the breakdown of the Earth’s ecosystem. After the network collapse, Celsius was left with no liquidity to honor its commitments to customers. As a result, the platform had to block withdrawals after reaching a loss of BRL 1.2 billion.

In May, Celsius finalized its sale to the Fahrenheit consortium, which brings together several cryptocurrency companies. But before that, in April, the company already had a restructuring plan providing for the return of 73% of customers’ money.

Now in more detail, Celsius has updated its updated bankruptcy plan which, barring limited exceptions, will not involve cryptocurrency distributions to non-BTC or ETH creditors. But there is still no prediction of when payments will start being made to customers.

By CriptoFacil