Find out how bankrupt Celsius weathered SEC regulatory attacks by converting its altcoins into Bitcoin (BTC) and Ether (ETH), marking a major turning point in the crypto-industry.
Amidst the tumult of the crypto industry, Celsius, a once troubled company, has managed to reinvent itself thanks to a groundbreaking decision by its New York bankruptcy court. Faced with an aggressive regulatory policy from the Securities and Exchange Commission (SEC), which considers certain altcoins to be financial securities, Celsius found an ingenious way to navigate these murky waters.
The story begins with the SEC’s resounding announcement, which rocked the cryptocurrency industry internationally. The US financial regulator revealed that many altcoins, including BNB, ADA, SOL and MATIC, were now to be considered “securities“. This announcement created a climate of uncertainty and turmoil among market players.
Celsius ahead of the game?
It was against this backdrop that the Bankruptcy Court for the Southern District of New York took a bold decision. It authorized Celsius owners to convert their altcoins into Bitcoin (BTC) and Ether (ETH), the two undisputed pillars of the cryptocurrency universe. A decision that has opened up new prospects for Celsius and its users.
“Debtors, in consultation with the Committee’s advisors, may sell or convert all non-BTC and non-ETH cryptocurrencies, tokens or other digital assets that are associated with hold or custody accounts (collectively referred to as ‘Altcoins’) into BTC or ETH as of July 1, 2023,” said the court.
In May 2023, Celsius was acquired by the Fahrenheit consortium in a high-profile auction. The platform’s new owners have clearly expressed their intention to revise the original bankruptcy plan and take bold steps to get Celsius back on track for success. The conversion of altcoins into Bitcoin and Ether marks the beginning of this transformation.
But Celsius is not the only platform to turn away from altcoins in the face of the SEC’s attacks. Révolut, the well-known neobank, has also taken the decision to suspend certain cryptos in the wake of the US regulator’s actions. This widespread movement reflects the growing pressure on the cryptocurrency industry and underlines the importance of adapting quickly to regulatory changes.
Celsius’ conversion of altcoins into Bitcoin and Ether represents a major turning point in the crypto-industry. It’s an ingenious response to current regulatory challenges, and proof that innovation and adaptability are the keys to success in this constantly evolving field. As the industry seeks to redefine the rules of the game, Celsius has taken the lead, turning adversity into opportunity and launching a new era in the world of cryptocurrencies.