Celsius plans to divest R$2.2 billion in Ethereum to repay creditors.

Bankrupt cryptocurrency lender Celsius Network plans to sell its existing Ethereum holdings to “ensure abundant liquidity” for investors affected by the company’s collapse.

According to Nansen’s data, Chelsea holds approximately 32% of all ETH waiting to be withdrawn from its staking program. This is equivalent to about 206,300 ETH, worth about $466 million (R$2.2 billion) at current prices.

Celsius said on Twitter that it had “begun the process of asset withdrawal and rebalancing” to prepare for asset distribution. It added that it will also retire its existing ETH holdings “to offset certain costs incurred throughout the restructuring process.” Staked ETH “provided valuable rewards income for the company,” he noted.

Celsius applied for judicial recovery in July 2022 amid a decline in the cryptocurrency market due to the collapse of the Terra (LUNA) ecosystem.

The customer repayment plan, which would return between 67% and 85% of creditors’ investments, was approved by a judge in November 2023 and will see about $2 billion in Bitcoin and Ethereum distributed to the company’s creditors.

The company’s former CEO, Alex Mashinsky, was arrested in July 2023 and indicted on seven charges, including securities fraud, telecommunications fraud, and wire fraud. His trial is scheduled for September 17, 2024.

*Translated by Gustavo Martins with permission from Decrypt.

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