Celsius Network’s Altcoin Holdings Approved for Conversion to BTC and ETH
Celsius Network, a bankrupt crypto lender, has been granted permission by a U.S. bankruptcy court to convert its altcoin holdings, valued at around $170 million, into Bitcoin (BTC) and Ethereum (ETH). This decision has resulted in the movement of the firm’s altcoins to a separate wallet for selling purposes.
Key points:
– Celsius Network transferred at least $64 million worth of cryptocurrencies to an OTC wallet from its Fireblocks Custody wallet.
– The largest transactions involved Chainlink (LINK), Polygon (MATIC), AAVE, and SNX tokens.
– Other notable tokens, such as Uniswap (UNI), Binance (BNB), and 1INCH, were also transferred.
– The approval to liquidate the altcoin stash for BTC and ETH was granted by the U.S. judge overseeing the bankruptcy case.
– The conversion of these altcoins could have a significant impact on the smaller token markets, as liquidity for these tokens has decreased over the past year.
This move by Celsius Network to convert its altcoin holdings to BTC and ETH could have a substantial effect on the crypto market, particularly for smaller tokens with lower liquidity. The decision to liquidate the altcoins comes after the company filed for bankruptcy protection and faced a shortage of customer funds. The arrest of the ex-CEO on various fraud charges further complicates the situation. Overall, this development highlights the challenges and risks associated with cryptocurrency lending and the potential impact it can have on market dynamics.
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