Celsius Network, a crypto firm that filed for Chapter 11 bankruptcy protection in the United States during the winter of 2022, is nearing the end of its restructuring plan. The company, which had lent out over $8 billion and had around 1.7 million customers at the time of its bankruptcy, sent shockwaves through the cryptocurrency industry when it collapsed. With a $1.2 billion deficit and $167 million in cash at the time of bankruptcy, Celsius was forced to liquidate some of its assets, including the GK8 digital asset custody platform.
The United States Securities and Exchange Commission has charged former Celsius CEO Alex Mashinsky for falsely promising a safe investment through unregulated securities. Despite this, Mashinsky remains free on a $40 million bail, with his trial scheduled for September 2024.
After months of waiting, Celsius creditors are expected to start receiving their funds in the coming days. The company announced that the unstaking of Ether has been initiated, with almost a third of the ETH in the pending withdrawal queue belonging to Celsius. The company expects to receive a total of 206,300 ETH, worth approximately $470 million. Eligible creditors will receive in-kind distributions of Bitcoin and Ether in the coming days as outlined in the court process.
Celsius has accrued a significant amount of Ether through the staking process, which will be used to offset some of the costs incurred during the restructuring process. The company will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process.
As part of its future plans, Celsius intends to focus solely on Bitcoin mining. The company announced last November that the new mining entity, NewCo, will be publicly traded and intends to retain some of the assets.
The significant Celsius unstaking of Ether could increase Ether’s selling pressure in the coming weeks amid high-impact news from the spot Bitcoin ETF decision in the United States. From a technical standpoint, ETH/USD on the daily time frame has been forming a reversal pattern, with a possible triple top and a bearish divergence on the daily Relative Strength Index (RSI). In case of a possible selloff triggered by the Celsius unstaking, ETH/USD could find a solid support range between $1,900 and $2,100. ETH has experienced significant resistance around $2,433 and has dropped about 5 percent in the past week to trade at $2250.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Alex Mashinsky |
| Companies | Nansen, GK8 digital asset custody platform, United States Securities and Exchange Commission, Celsius Network, NewCo |
| Currencies | united states dollar, Bitcoin, Lido Staked Ether |
| Securities | None |
