Cersius converted nearly 23000 WBTC to BTC on Tuesday with the consent of the creditor committee

On March 4, according to a document in the Chapter 11 bankruptcy protection proceedings of Celsius on March 3, the conversion of 22962.8 WBTC to Bitcoin by Celsius on February 28 was carried out with the consent of the Celsius creditor committee.

Interpretation of this information:

The message dated March 4th states that the Celsius Network has been undergoing Chapter 11 bankruptcy proceedings. On March 3rd, a document indicated that Celsius had converted 22,962.8 Wrapped Bitcoin (WBTC) to Bitcoin on February 28th. The conversion took place with the approval of the creditor committee.

Chapter 11 bankruptcy protection is a legal mechanism that allows a company to restructure its finances while continuing to operate under the supervision of a bankruptcy court. It gives the company an opportunity to come up with a plan to repay its debts while protecting its assets from creditors.

The conversion of WBTC to Bitcoin is an interesting move by Celsius. WBTC is a type of cryptocurrency that is backed by Bitcoin at a 1:1 ratio. It is essentially a tokenized version of Bitcoin that is used on the Ethereum blockchain. The conversion of WBTC to Bitcoin suggests that Celsius needed more liquidity in the form of Bitcoin.

It is not clear why Celsius needed more Bitcoin, but it could be due to the volatility of the cryptocurrency market. Celsius is a cryptocurrency lending platform that allows users to earn interest on their digital assets. The platform charges interest rates for borrowing cryptocurrencies, which can be affected by market conditions. It is possible that Celsius needed more Bitcoin to be able to fund its lending operations.

The message also mentions the creditor committee, which is a group of creditors who are responsible for overseeing the bankruptcy proceedings. The fact that the conversion of WBTC to Bitcoin was carried out with their consent suggests that they are willing to work with Celsius to find a solution to the company’s financial troubles.

Overall, the message indicates that Celsius is working to restructure its finances and find a way to repay its debts. The conversion of WBTC to Bitcoin is a strategic move that suggests the company is looking for ways to increase its liquidity. The fact that the creditor committee has approved the conversion suggests that they are willing to work with Celsius to find a way forward.