In a strategic move to unlock a significant portion of its Ethereum holdings, Celsius has transferred over 40,000 Ethereum, valued at over $90 million, to its major creditors, Coinbase and FalconX, over the past week. Arkham Intelligence reports that Celsius still holds a substantial amount of Ethereum in its Staked ETH account, approximately 59,000 ETH, valued at over $133 million.

This decision is part of a comprehensive plan to facilitate the allocation of assets to the firm’s creditors, a crucial step in its bankruptcy proceedings. Celsius, which filed for Chapter 11 bankruptcy protection in July 2022, has been grappling with a severe liquidity crisis, worsened by the downturn in the cryptocurrency market following the UST crash and FTX’s collapse. The decision to unstack Ethereum is expected to generate the liquidity needed to navigate the costs associated with the restructuring process and ensure that creditors receive their dues on time.

On Boxing Day, the court approved Celsius Network and its associated unsecured creditors to proceed with the “MiningCo Transaction.” This decision, documented in court filings, allows Celsius to move forward with a specific part of its restructuring plan.

Despite objections from the United States Trustee, a group of borrowers, and individual creditors like Cathy Lau and Anne Yeilding, the court ultimately sanctioned Celsius’s plan. This approval, along with the company’s recent ETH unstaking efforts, is a significant step in its ongoing efforts to manage its bankruptcy and restructure its operations.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	1
People	Anne Yeilding, Cathy Lau
Companies	Celsius, Arkham Intelligence, United States Trustee, FalconX, Coinbase
Currencies	Ethereum, ust
Securities	None