New York Southern District Court bankruptcy judge Martin Glenn ordered bankrupt cryptocurrency financier Celsius to begin selling or converting altcoins into Bitcoin (BTC) and Ether (ETH) on Friday.

The price of CEL, the native token of the Celsius network, surged Friday, rising 33% to trade above $0.15 in the past 24 hours.

Celsius Can Sell BTC, ETH Altcoins Starting July 1st

The altcoin liquidation will take place prior to the asset distribution plan to creditors and will begin after July 1, the judge said. ordered.

Debtors, in consultation with the Advisors of the Commission, may purchase non-BTC and non-ETH cryptocurrencies, cryptographic tokens, or other cryptocurrency assets other than tokens associated with their withholding or custody accounts (collectively, “” ) can be sold or converted. altcoin”) to his BTC or ETH will start after July 1, 2023.,” reads part of the judgment.

Celsius is expected to use “commercially reasonable efforts to maximize the value of any altcoin that is sold or converted into BTC or ETH.” However, the SEC recently claimed that some of the altcoins held by cryptofinancial firms are securities, so the sale is expected to be subject to “exemptions applicable to U.S. securities laws.”

Cardano (ADA), Polygon (MATIC), and Near (NEAR) are among the tokens recently highlighted as securities in lawsuits against Binance and Coinbase by US regulators. Celsius holds these and other alternative currencies such as Bitcoin Cash (BCH), Litecoin (LTC) and Chainlink (LINK).

Tokens have recently traded at higher prices alongside the broader cryptocurrency market, but it remains to be seen how offloading will affect prices.

Celsius filed for bankruptcy in July 2022 after suspending customer withdrawals amid the crypto epidemic following the collapses of Terra and Three Arrows Capital.

According to court documents, the company has been in dialogue with the SEC and state regulators seeking to update its restructuring plans to distribute cryptocurrencies only to Bitcoin and Ether creditors.

By Jules

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