The Celsius Network has officially received the green light from the United States Bankruptcy Court for the Southern District of New York to convert its altcoins into Bitcoin (BTC) or Ethereum (ETH).

Issued by Judge Martin Glenn, the order points to the fact that the bankrupt lender will be authorized to: “sell or convert any cryptocurrency assets, excluding tokens associated with Withhold or Custody accounts, into BTC or ETH starting from July 1, 2023.”

After the calamitous fall of the Terra ecosystem which witnessed the collapse of the Terra (LUNA( and TerraUSD (UST) tokens, Celsius faced bankruptcy and has been recently purchased by crypto consortium Fahrenheit in May of this year. Despite that, the bankrupt firm is looking to resolve its conundrums and converting altcoins into BTC or ETH will unlock more funds for Celsius to utilize towards resolving its bankruptcy.

Amid the SEC crackdown on altcoins, which are classified as securities according to the American financial watchdog, Celsius and other firms within the crypto ecosystem will be able to convert altcoins into Bitcoin or Ethereum. Other securities also include Polygon (MATIC), Cardano (ADA) and Solana (SOL).

Sources:

https://cointelegraph.com/news/celsius-network-approved-convert-altcoins-into-btc-or-eth

https://www.coindesk.com/policy/2023/06/30/bankrupt-celsius-can-convert-altcoins-to-btc-eth-starting-july-1-following-sec-talks/

https://cryptoslate.com/celsius-granted-court-approval-to-convert-altcoins-into-bitcoin-and-ethereum/