March 27, 2024
Celsius Initiates Ethereum Unstaking for Creditor Repayments
Latest Cryptocurrency News

Celsius Initiates Ethereum Unstaking for Creditor Repayments

Celsius, the troubled crypto lending platform, has initiated the process of recalling and rebalancing its crypto assets, including Ether (ETH), as it prepares for “timely distributions to creditors.” The company, currently in bankruptcy court since its Chapter 11 filing in July 2022, aims to ensure ample liquidity for potential asset distributions. Celsius plans to unstake its existing Ether holdings, which generated valuable staking rewards income for the estate. The freed Ethereum will be utilized to offset certain restructuring costs and facilitate timely distributions to creditors.

This development is particularly encouraging for customers who have been waiting for over 18 months to recover their funds. As part of the recovery plan, Celsius intends to distribute BTC and/or ETH to its creditors. Blockchain analytics firm Nansen reveals that nearly one-third of the ETH in the pending withdrawal queue belongs to Celsius, totaling 206,300 ETH, approximately valued at $468.5 million. Additionally, 19,906 validators await a complete exit, and Celsius has already withdrawn 40,249 ETH to date.

While concerns have been raised about a potential Ether “dump” on the markets, some view this move positively for Ethereum in the long run.

“I don’t think you guys understand how much weight will be lifted off ETH when Celsius vampires finally fuck off into oblivion and redist what’s left.”

Celsius was among several crypto lenders that faced insolvency during the crypto market challenges of 2022. In November, the company announced a revised post-bankruptcy strategy focused on Bitcoin mining, drawing displeasure from the judge overseeing its bankruptcy proceedings due to the abrupt change.

Photo by Jonathan Borba

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