Embattled crypto lending platform Celsius has announced that it is recalling and rebalancing its crypto assets, including Ether (ETH), in preparation for distributing funds to creditors. The company, which has been in bankruptcy court since filing for Chapter 11 in July 2022, is shifting assets to ensure ample liquidity for the distribution process.
Celsius plans to unstake its existing Ether holdings, which have generated staking rewards income, in order to offset costs incurred during the restructuring process. This move is expected to unlock ETH and facilitate timely distributions to creditors. The news is particularly positive for customers who have been waiting for over 18 months to retrieve their funds.
According to blockchain analytics firm Nansen, approximately one-third of the ETH in the pending withdrawal queue belongs to Celsius, amounting to 206,300 ETH valued at around $468.5 million. The firm also reported that 19,906 validators are waiting for a full exit, and Celsius has already withdrawn 40,249 ETH to date.
While some express concerns about the potential impact of the move on Ether markets, others believe that the departure of Celsius will ultimately benefit the market. Celsius was one of several crypto lenders that faced bankruptcy during the crypto contagions of 2022.
In November 2023, Celsius announced a scaled-back post-bankruptcy strategy focused on Bitcoin mining. However, the judge overseeing the company’s bankruptcy proceedings expressed dissatisfaction with the sudden change in direction.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | Celsius, Nansen |
| Currencies | Ethereum |
| Securities | None |
