Celsius Network set to convert altcoins into BTC and ETH

• Celsius transferred its owned altcoins into new wallets to prepare for its conversion.
• CEL’s price fell and the CTFC may soon probe the firm’s former CEO.

Bankrupt cryptocurrency lending firm Celsius Network [CEL] has begun the procedure of converting its assets into Bitcoin [BTC] and Ethereum [ETH]. According to Nansen, an overview of the company’s portfolio revealed that it was moving pre-owned altcoins into new wallets.

Read Celsius Network’s [CEL] Price Prediction 2023-2024

Time to comply

As of 5 July, assets including Polygon [MATIC], Avalanche [AVAX], and a host of others had new storage homes. The action depicted the first step in the conversion.

On 1 July, Celsius had gotten approval from the U.S. Bankruptcy Court in New York to take action. In one section of the ruling, where it also considered Celsius’ debtors and creditors, the court agreed that,

“In compliance with paragraph 4 of the Cash Management Order and this Stipulation and Order, the Debtors, in consultation with the advisors to the Committee, may 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 (collectively, the “Altcoins”) to BTC or ETH commencing on or after July 1, 2023.”

CEL direction changes

Following the development, the project’s native token, CEL, lost 11.09% of its value in the last 24 hours. This was accompanied by a 24.03% reduction in its 24-hour volume. 

The fall in trading volume indicated declining momentum. Since it was a case of falling prices on decreasing volume, it equally meant that CEL’s shift in direction was non-negotiable after its recent double-digit hike. 

As per its network growth, as shown above, Santiment revealed that it had plunged. Typically, the network growth shows the number of new addresses being created on a network. 

If the metric rises, then it means that a project was gaining traction. But in CEL’s case, the decrease represented a loss in user adoption over time.

Source: Santiment

Regulatory eyes on Alex

In a related development, Bloomberg reported that Celsius Network’s former CEO, Alex Mashinsky, also broke U.S. regulations before the firm’s troubles began. 

According to the report, backed by the Commodities Futures Trading Commission’s (CTFC) investigation, Mashinsky misled Celsius’ investors and did not register with the regulator.

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Furthermore, the CTFC enforcement unit claimed that it could file a case against the embattled CEO soon. Bloomberg, in its report, noted that,

“If a majority of the CFTC’s commissioners agree with that conclusion, the agency could file a case in federal court as soon as this month.”

At press time, neither Mashinsky nor Celsius had publicly commented on the matter.