Bankrupt crypto lender Celsius has been given permission to begin liquidating its Bitcoin (BTC) and Ether (ETH) altcoins.
This will happen before distributions to creditors take place, who expect to receive their assets denominated only in the top two cryptocurrencies by market capitalization.
- According Bankruptcy Judge Martin GlennCelsius “may sell or convert any non-BTC and non-ETH cryptocurrency, crypto tokens, or other cryptocurrency assets other than these tokens that are associated with holding or custodial accounts…into BTC or ETH from July 1, 2023 or after that date, ”
- The approval comes after the United States Securities and Exchange Commission (SEC) named many of the top altcoins as unrecorded titles in two major crypto industry lawsuits.
- Celsius has been in contact with the SEC to “ensure that all such distributions fully comply with applicable federal and state laws and regulations,” the filing said.
- A consortium of crypto investors called Farenheit won an auction to acquire the assets of Celsius last month. The consortium includes US Bitcoin Corp, Proof Group Capital Management LLC, Ravi Kaza, former Algorand CEO Steven Kokinos, and Coinbase.
- Celsius had 1.7 million users when it failed last year, including 300,000 with balances over $100.
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