Bankrupt cryptocurrency lender Celsius Network plans to release its existing Ethereum holdings to “ensure sufficient liquidity” when distributing assets to creditors.
Celsius Network announced in a tweet that it had “begun an asset recovery and rebalancing process” to prepare for asset distribution.
It added that it would release existing ETH holdings “to offset certain costs incurred throughout the restructuring process,” and noted that the staked ETH “provided valuable staking reward returns to the property.”
According to Nansen’s data, Chelsea accounts for 32% of ETH awaiting withdrawal. This is approximately 206,300 ETH, or over $466 million at current prices.
Celsius filed for Chapter 11 bankruptcy protection in July 2022 amid the cryptocurrency market slump triggered by Terra’s collapse.
A customer repayment plan that would return 67% to 85% of creditors’ investments was approved by a judge in November 2023, worth about $2 billion. Bitcoin and Ethereum It is distributed to the company’s creditors.
The company’s former CEO, Alex Mashinsky, was arrested in July 2023 and charged with seven counts, including securities fraud, commodities fraud, and wire fraud. His trial is scheduled for September 17, 2024.
