Celsius Unstakes 466M Dollars Ethereum to Ensure Creditor Liquidity

With nearly one-third of ETH in withdrawal limbo, Celsius Network initiates asset recalibration in anticipation of distribution.

Ecem EFE05/01/20241 Mins read462

Celsius Unstakes 466M Dollars Ethereum To Ensure Creditor Liquidity

Crypto News- Celsius Network, a crypto lending platform currently navigating Chapter 11 bankruptcy, has recently unveiled its strategy to enhance liquidity during the asset distribution process. In a recent tweet, the company declared its initiative to recall and rebalance assets, emphasizing the unstaking of its existing Ethereum (ETH) holdings. This move is aimed at mitigating specific costs incurred during the restructuring phase, while underlining the significant staking rewards derived from its ETH holdings.

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Celsius Unstakes 466M Dollars Ethereum to Ensure Creditor Liquidity

According to data from Nansen, Celsius Network holds a substantial share, approximately 32%, of Ethereum awaiting withdrawal, totaling around 206,300 ETH. The current market value of this ETH is estimated to be over $466 million. The bankruptcy filing occurred in July 2022, coinciding with the broader downturn in the cryptocurrency market triggered by the collapse of Terra.

The approval of a customer repayment plan in November 2023 marked a crucial development, facilitating the distribution of approximately $2 billion in Bitcoin and Ethereum among Celsius Network’s creditors. The plan promises to provide returns ranging from 67% to 85% of the investments made by creditors. The decision to seek Chapter 11 protection was prompted by the challenging market conditions stemming from the overall crypto market decline.

Celsius Network Unstakes ETH in Bankruptcy Twist Amidst CEO’s Legal Woes

Adding to the intricacies of Celsius Network’s situation, the former CEO, Alex Mashinsky, stepped down amid the crisis and faced legal issues following his arrest in July 2023. Mashinsky has been indicted on seven charges, including securities fraud, commodities fraud, and wire fraud. The trial for these charges is scheduled for September 17, 2024, further complicating the ongoing saga surrounding Celsius Network.

Sources:decrypt

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Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.