• Celsius Network has moved its owned altcoins into new wallets to prepare for its conversion of assets into BTC and ETH.
• The U.S Bankruptcy Court in New York gave the approval to start this process on July 1, 2023.
• Following the development, CEL’s price fell and there is a possibility of a CTFC probe on the company’s former CEO Alex Mashinsky.
Celsius Network Set To Convert Altcoins Into BTC And ETH
Celsius Network [CEL], a bankrupt cryptocurrency lending firm, has been given approval by the U.S Bankruptcy Court in New York to convert its assets into Bitcoin [BTC] and Ethereum [ETH]. This process began on July 1, 2023 with the project transferring its owned altcoins into new wallets as a preparation step.
Price Drop After Conversion Approval
Following this news, CEL’s price dropped 11.09% in 24 hours along with a 24.03% reduction of its trading volume which represents decreasing momentum. Additionally, network growth metrics also revealed that user adoption is declining over time as shown by Santiment’s analysis.
CTFC Probe On Former CEO Alex Mashinsky
As reported by Bloomberg, it is possible that the Commodity Futures Trading Commission (CTFC) will investigate Celsius Network’s former CEO Alex Mashinsky due to his involvement with Unikrn Inc., an eSports betting platform sanctioned by the regulator for offering unregistered digital asset securities products.
Court Permission For Asset Exchange
The permission from the court was detailed in one section of the ruling which stated that “In compliance with paragraph 4 of the Cash Management Order and this Stipulation and Order, the Debtors may sell or convert any non-BTC and non-ETH cryptocurrency…to BTC or ETH commencing on or after July 1, 2023.“
Conclusion
It appears that these developments have had an effect on CEL’s position in terms of market value and user adoption although it remains to be seen if further regulatory probes will take place regarding Alex Mashinsky’s involvement with Unikrn Inc..