New York court has granted approval for Celsius debtors to initiate the conversion of altcoins into Bitcoin and Ether, starting from July 1. Bankruptcy Judge Martin Glenn authorized this move in a filing dated June 30, marking a crucial step forward in the asset recovery process.
Earlier this month, Celsius, a prominent cryptocurrency lending platform, announced plans to facilitate altcoin conversions to Bitcoin and Ether. However, the court’s official consent was required to proceed with the implementation of this strategy. With Judge Glenn’s approval, Celsius debtors can now move forward with the conversion process, enabling them to reclaim their assets.
Celsius had filed for Chapter 11 bankruptcy protection on July 13, 2022, after disclosing substantial liabilities amounting to up to $10 billion. The company had temporarily halted withdrawals the day prior to its bankruptcy filing and has since been collaborating with regulatory bodies to ensure the return of funds to its debtors.
The decision to allow Celsius debtors to swap altcoins for Bitcoin and Ether is a significant milestone for the affected individuals. By providing an opportunity to convert their altcoin holdings into widely recognized and more stable cryptocurrencies, such as Bitcoin and Ether, the debtors can now regain control over their assets in a more liquid form.
However, this could provide an additional sell pressure on altcoins, which could drive its price lower.
This move not only facilitates the recovery process but also addresses concerns regarding the accessibility and value realization of the altcoins held by Celsius debtors. Bitcoin and Ether are two of the most prominent cryptocurrencies globally, widely accepted across numerous platforms, and possess a higher degree of liquidity compared to other altcoins.
Celsius, in its continued efforts to adhere to regulatory requirements and ensure a fair resolution for its debtors, has been actively working towards the return of funds and asset recovery. The conversion process will likely provide additional flexibility for the affected individuals and contribute to a more efficient resolution of the overall bankruptcy proceedings.
As the conversion of altcoins to Bitcoin and Ether commences on July 1, Celsius debtors can look forward to a more streamlined and accessible means of reclaiming their assets. This step marks a positive development in the ongoing bankruptcy proceedings and underscores the commitment of all parties involved to facilitate a fair and equitable resolution for Celsius and its debtors.