The ability to convert all of the cryptocurrencies in the possession of Celsius debtors into either Bitcoin (BTC) or Ether (ETH) has been requested in court documents. The debtors submitted the document to the Southern District of New York’s U.S. Chapter Court on June 14, 2023. According to rumors, the submission asks the debtors to begin selling their holdings for a profit on July 1, 2023.
On the Ethereum Digital Machine (EVM) chain, Celsius has cryptocurrencies worth up to $141 million, according to Lookonchain, the SmartMoney on-chain evaluation tool. Lookonchain claimed the following assets as belonging to the Celsius debtors: 651 million CEL worth $73 million, 3.1 million LINK worth $16 million, 21 million MATIC worth $12.6 million, 7.9 million TGBP worth $9.6 million, and a few.97 million SNX worth $5.4 million.
According to reports, the submission does not apply to tokens held in custody or withhold accounts and does not affect creditor claims. The debtors said they might try to maximize the currency conversion each time the opportunity presents itself.
According to the debtors, sending cryptocurrencies to debt collectors is the main reason for this shift. Except in cases where such options are limited, these funds could be in the form of BTC and ETH. There may be a daily update to the token conversion inside the execution strategy. That might be covered in the monthly money and coin reports.
In July 2022, Celsius, a defunct cryptocurrency cash lender, filed for bankruptcy. In June, Celsius stopped allowing customer withdrawals prior to the submission, claiming “excessive market circumstances.” A federal chapter decision favored Celsius over cryptocurrencies placed into community interest-bearing accounts in January 2023. By making the choice, Celsius asserted ownership of up to $4.2 billion in cryptocurrency that users had invested into its lucrative Earn programmed.
