• US Judge Grants Bankrupt Crypto Lender Celsius Greenlight To Convert Altcoins Into Bitcoin and Ethereum
• A court document reveals that the Southern District of New York ruled that starting on July 1st, Celsius will be allowed to convert all non-BTC and non-ETH cryptocurrencies into the top two digital assets
• In July 2022, Celsius filed for bankruptcy after its native asset plummeted by over 99% and it was unable to fulfill customer withdrawals
US Judge Grants Bankrupt Crypto Lender Celsius Greenlight To Convert Altcoins Into Bitcoin And Ethereum
A US judge is allowing bankrupt crypto lender Celsius to convert its altcoin holdings into Bitcoin (BTC) and Ethereum (ETH). According to a court document from the Southern District of New York, starting on July 1st, the firm will be allowed to exchange all non-BTC and non-ETH cryptocurrencies into the top two digital assets.
Celsius’s Financial Struggles
In July 2022, Celsius filed for bankruptcy after its native asset plummeted by over 99% and it was unable to fulfill customer withdrawals. This led to a class action lawsuit which alleged that it was operated as a “literal” Ponzi scheme. New York State Attorney General Letitia James then sued Alex Mashinsky, who at the time was the company’s CEO, for making misleading statements to investors and failing to properly register as required by state law. However, Mashinsky responded that James’ allegations were based on misinformation.
Judge’s Ruling On Conversion Of Altcoins
The ruling states that beginning on July 1st 2023, customers are allowed to convert their altcoins into BTC or ETH using commercially reasonable methods in order maximize their value. The company must also provide monthly reports regarding how much they have converted.
Potential Implications For Crypto Markets
If this ruling is implemented successfully then this could have significant implications for cryptocurrency markets as more people may begin looking towards converting their altcoins into BTC or ETH rather than holding onto them. This could lead to increased demand for these coins in particular while other coins may not benefit as much from this decision.
Conclusion
It remains unclear how successful this ruling will be in providing financial relief for Celsius but it does open up new possibilities for cryptocurrency traders who want exposure to some of the most popular digital assets without having to purchase them directly. With more people potentially entering these markets, we may see increased volatility with prices potentially increasing or decreasing depending on market sentiment.