"It's bad, why is the client's altcoin a victim for sale?"
As the cryptocurrency market continues to experience relatively high selling pressure, bankrupt digital asset lender Celsius Network LLC, which launched a Reorganization Plan, reportedly wants to sell all of its clients' altcoins, excluding custody account holdings.
It is well known that the process will start on July 1, 2023 and the amount recovered from the sale of the altcoin will be converted into Bitcoin (BTC) and Ethereum (ETH).
It is already known that the move was implemented shortly after the crypto lending company announced that it would choose Fahrenheit's proposal to operate a new entity to be owned by its creditors.
Even so, David Adler, partner of McCarter & English revealed that the segment of borrowers represented by him in the case may file objections to the plan as Celsius may not return their collateral.
Adler added again, the debtor demanded repayment of the loan but they had absolutely no intention of performing their contractual obligations.
He also noted that Celsius' proposal violates both state and federal consumer lending laws, so Adler will vigorously oppose the plan in court.
In the meantime, further extension of exclusivity does not need to be done following no communication from Celsius to borrowers for the last six or seven weeks.
