Celsius to unstake ETH holdings for creditors to ‘ensure ample liquidity’

Quick Take

  • The crypto lender filed for bankruptcy in the summer of 2022.

The bankrupt cryptocurrency lender Celsius Network announced today on X that it plans to unstake existing holdings of Ethereum to facilitate asset distribution to its creditors. 

Celsius added in a following X post that the “significant” unstaking event is scheduled to take place in the next few days. The staked Ethereum holdings have provided the defunct company an income stream to offset costs that it obtained in its restructuring process, according to the post.

Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York in July 2022 after the spiraling crypto market forced the lender, met with a liquidity crisis, to freeze withdrawals. 

Following the greenlit settlement plan, Celsius has opened its vault for qualified users to withdraw 72.5% of their crypto, up until Feb. 28. According to a court filing from last September, about 58,300 users held $210 million in what the court categorized as “custody assets.”

Meanwhile, Alex Mashinsky, the founder and former CEO of Celsius who was arrested for fraud charges and is currently out on bail, is facing his jury trial on Sep. 17.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.

Editor

To contact the editor of this story:
Timmy Shen at
[email protected]