• Celsius Network [CEL] has begun the process of converting its assets into Bitcoin [BTC] and Ethereum [ETH].
• The US Bankruptcy Court in New York gave approval for Celsius to convert its altcoins into BTC and ETH.
• CEL’s price dropped drastically and the CTFC may soon probe the firm’s former CEO, Alex Mashinsky.
Celsius Network Set to Convert Altcoins into BTC and ETH
The United States Bankruptcy Court in New York has approved a conversion for cryptocurrency lending firm Celsius Network [CEL], which will allow it to transfer its owned altcoins into Bitcoin (BTC) and Ethereum (ETH).
Altcoin Conversion Process Begins
According to Nansen, an overview of Celsius‘ portfolio revealed that it was moving pre-owned altcoins into new wallets. Assets including Polygon [MATIC], Avalanche [AVAX], and more have been transferred as the first step in the conversion process.
Price Plunge & Regulatory Investigation
After this development, CEL’s native token saw a 11.09% decrease in value over 24 hours along with a 24.03% reduction in trading volume. Additionally, Santiment revealed that network growth had decreased due to a lack of user adoption over time. Lastly, Bloomberg reported that there may be a potential regulatory investigation on former CEO Alex Mashinsky due to his involvement with the project before bankruptcy proceedings began.
With this news from the US Bankruptcy Court regarding Celsius’s altcoin conversion comes both good and bad news for investors – while they may benefit from converting their assets into Bitcoin or Ethereum, CEL’s prices have seen drastic drops as regulatory investigations loom ahead for Mashinsky.
This situation serves as an important reminder that investors should always remain cautious when investing in any cryptocurrency project or token – regardless of past performance or future prospects – as even seemingly reliable projects can come under fire from regulators at any time.