• Celsius is allowed to sell altcoins for BTC and ETH starting from July 1.
• The court ordered Celsius to use “commercially reasonable efforts” to maximize the value of the altcoins.
• The sale of the altcoins must comply with US securities laws exemptions.
Court Allows Celsius to Sell Altcoins for BTC and ETH Starting July 1
Bankruptcy Judge Martin Glenn of the US Southern District Court of New York on Friday gave an order that crypto lender Celsius can begin selling or converting altcoins into Bitcoin (BTC) and Ether (ETH), starting on or after July 1, 2023. The native token CEL rose sharply in price by 33% in 24 hours, trading above $0.15.
Sale Must Comply With Securities Laws Exemptions
The judge ordered that when selling or converting these altcoins, Celsius must use “commercially reasonable efforts” to maximize their value. Furthermore, they must comply with applicable exemptions from US securities law as some of the tokens held by Celsius have been alleged by the SEC as securities – including Cardano (ADA), Polygon (MATIC) and Near (NEAR). Other tokens include Bitcoin Cash (BCH), Litecoin (LTC) and Chainlink (LINK).
Celsius Filed For Bankruptcy Last Year
Celsius filed for bankruptcy last year in July 2022 after pausing customer withdrawals due to a crypto contagion sparked by Terra and Three Arrows Capital’s collapse. Since then, it has been working with the SEC and state regulators regarding its restructuring plan.
Price Impact On Alt Coins Remains Unknown
It is yet unclear what impact this offloading will have on prices since all tokens have traded higher alongside the broader crypto market recently.
This news comes ahead of a planned distribution of assets to creditors which will start soon, so investors are advised to keep an eye out for any changes in prices over the coming weeks as more details emerge about this development.