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.
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.
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