Bankrupt crypto lender Celsius is set to unstake 206,300 Ethereum, worth around $470 million, as part of its efforts to distribute assets to creditors. The move comes as Celsius undergoes a restructuring process, with the unstaking event expected to take place in the next few days. Celsius has stated that its staked Ethereum holdings provided valuable staking rewards income to offset certain costs incurred during the restructuring.
The decision by Celsius to unstake such a significant amount of Ethereum has raised concerns within the crypto community, with some suggesting that it could negatively impact the price of Ether, the second-largest digital asset by market capitalization. Nansen’s Ethereum Shanghai Upgrade dashboard shows that Celsius wants to withdraw 32% of all ETH awaiting withdrawal, which amounts to nearly $470 million.
Furthermore, Celsius’s decision has led to a surge in the Ethereum validator exit queue, with the waiting time extending to approximately six days. However, the announcement also signifies progress in Celsius’s restructuring journey and the imminent return of customers’ assets. The court has already approved a restructuring plan that could enable creditors to recover up to 79% of their holdings.
Despite the positive developments, criticisms have emerged due to the absence of a disclosed effective distribution date, leaving customers uncertain and expressing weariness over continual preparation updates.
It is worth noting that this is not the first time Celsius has sold digital assets. Last December, the bankrupt lender sold $250 million of digital assets, including Ethereum, in a span of 30 days. Observers at the time speculated that the firm was selling to capitalize MiningCo, a Bitcoin mining company that creditors of Celsius would own. However, Celsius has clarified that eligible creditors will receive in-kind distributions of BTC and ETH as outlined in the approved Plan.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | X (formerly Twitter), Celsius, Nansen, Ethereum Shanghai (Shapella) Upgrade, beaconcha.in |
| Currencies | Ethereum |
| Securities | None |
