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Celsius, one of the bankrupt crypto financiers in the industry, was given permission to begin liquidating its altcoin holdings on July 1. according to Judgment on June 30th.
The decision comes as the company, which declared bankruptcy last year, is preparing to distribute repayments to creditors starting July 1 in only two of its most popular cryptocurrencies: Bitcoin (BTC) or Ether (ETH). It has been made.
“[Celsius] Beginning in July, sell or convert non-BTC and non-ETH cryptocurrencies, crypto tokens, or other crypto assets other than tokens associated with withholding or custody accounts (collectively, “Altcoins”) for BTC or ETH can. January 2023”
The approval was given by Bankruptcy Judge Martin Glenn for the Southern District of New York, and was proposed by Celsius after extensive consultations with the U.S. Securities and Exchange Commission (SEC). Because of the SEC’s right to “oppose transactions involving cryptoassets for any reason,” the European Commission recently classified a variety of non-mainstream cryptotokens as securities and required regulatory approval for their management. I needed it.
Celsius will continue to work with the SEC and other state regulatory agencies to ensure that the proposed virtual currency distribution under the Plan is fully compliant with all relevant federal and state laws and regulations. Continuing dialogue.
Celsius suspended withdrawals in June 2022 and went bankrupt in July 2022, but was approved for sale to the cryptocurrency consortium Fahrenheit in May. Bankruptcy plans do not include distribution of cryptocurrencies to creditors beyond BTC or ETH, with limited exceptions.
“Debtors exercised extreme caution and did not recognize the status of certain tokens as securities under the U.S. securities laws. [Celsius] We intend to sell or convert such tokens pursuant to exemptions from US securities laws. ”
The SEC recently tightened regulations on major cryptocurrency exchanges such as Coinbase, Binance and Bittrex. However, crypto industry leaders are unwilling to back down, and the Blockchain Association is calling on Gensler to back off.
“The time has come for Chairman Gensler to distance himself from all decisions on digital asset-related enforcement issues. I anticipate.”