Celsius gains approval to sell off Altcoins for BTC and ETH beginning July 1st

In late June 2023, a U.S. bankruptcy court authorized Celsius Network, the collapsed crypto lender, to begin converting its remaining altcoin holdings into bitcoin (BTC) and ether (ETH) starting July 1, 2023, following consultations with the U.S. Securities and Exchange Commission (SEC). The order applied to most customer and estate altcoin holdings, with certain exceptions such as some custody and withhold accounts, and was framed as part of Celsius’ broader Chapter 11 restructuring and creditor-repayment plan. This authorization came after the SEC’s evolving stance on various tokens and its view that many altcoins may constitute securities, pushing Celsius toward more regulatory-clear assets like BTC and ETH in its wind‑down process. The decision effectively set up a large-scale liquidation of a wide range of tokens—including DeFi and exchange tokens—into BTC and ETH to create a more standardized asset base for future distributions to creditors. Subsequent on-chain activity and reporting showed Celsius preparing to offload hundreds of millions of dollars’ worth of altcoins, raising concerns in markets about potential short-term selling pressure on affected tokens. For creditors, the shift marked a key step toward eventual recoveries denominated largely in BTC and ETH rather than in the diverse set of tokens originally deposited on the platform, illustrating how regulatory considerations and bankruptcy processes can reshape asset composition in major crypto insolvencies.

✨ AI-generated background, compiled from web sources — not editorial content.

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