In a significant development in the cryptocurrency lending space, Celsius, a prominent crypto lending company, has been granted permission to start converting its substantial altcoin assets to Bitcoin and Ethereum. The authorization comes as part of the company's ongoing bankruptcy proceedings.
The company's altcoin holdings, which are worth over $170 million, include 90 million MATIC, 103 million ADA, 161,000 SOL, 3.3 million LINK, 1.8 million DOT, 200,000 LTC, and 106,000 AAVE as of November 25, 2022, according to court documents. The exact portion of these holdings that will be sold is yet to be determined.
In addition to these altcoins, Celsius also owns 650 million of its own CEL tokens and millions more in stablecoins. The CEL token holdings are theoretically worth almost $120 million, although it remains unclear if they can be liquidated.
The decision to convert these assets is aimed at delivering Bitcoin and Ethereum to creditors who have been waiting for nearly a year to get their money back. The judge's ruling allows Celsius to “sell or convert any non-BTC and non-ETH cryptocurrency, crypto tokens, or other cryptocurrency assets other than such tokens that are associated with Withhold or Custody accounts” to Bitcoin or Ethereum.
This move signifies a significant shift in the company's asset management strategy and could potentially impact the market dynamics of the altcoins involved. The conversion process is set to commence on July 1.
As the proceedings continue, the crypto community will be closely watching the impact of this decision on the broader market and the precedent it sets for other crypto lending platforms.