Celsius Resurfaces from Bankruptcy: Releases 30,000 ETH to Strengthen Restructuring Efforts

Celsius, the cryptocurrency lending platform that filed for Chapter 11 bankruptcy in July 2022, has announced a significant move to unstake more than 30,000 ETH. This decision is expected to relieve selling pressure on Ether (ETH) prices.

Celsius had previously integrated staking into its operations and was using the rewards to cover expenses related to its ongoing reorganization process. However, the company has now decided to unstake its existing ETH holdings as part of its effort to offset specific costs incurred during the restructuring.

This move is good news for customers who have been waiting for over 18 months to retrieve their funds. According to Celsius’ recovery plan, customers will receive either Bitcoin (BTC) or ETH as part of the distribution process.

Nansen, a blockchain analytics firm, has revealed that a significant portion of the ETH in the pending withdrawal queue is linked to Celsius, amounting to approximately 206,300 ETH. This translates to a substantial value of around $468.5 million at current market prices. The data also shows that 19,906 validators are eagerly waiting for a full exit, with Celsius having already withdrawn 40,249 ETH to date.

According to Arkham, wallets associated with Celsius have staked a significant sum, surpassing $151 million in Ether, with an annualized yield of 4%-5%. While the staking rewards may not have triggered substantial ether sales, they may have contributed to the negative sentiment towards the token, exacerbated by factors such as the growing interest in alternative blockchains.

Recent outflow data reveals that Celsius has moved over 30,000 ETH to custodian Fireblocks, with a portion of it deposited on Coinbase. This action suggests a potential swap for stablecoins, adding another layer to the evolving dynamics of the market.

Tags: Exchange News