Celsius Network Announces Unstaking of Ethereum Holdings to Facilitate Distribution to Creditors
Now-defunct cryptocurrency lender Celsius Network has revealed plans to unstake its Ethereum (ETH) holdings as part of its efforts to distribute assets to creditors.
In a recent announcement made on X, Celsius Network shared that it intends to carry out a “significant” unstaking event within the next few days.
“Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process,” the company wrote.
As a reminder, eligible creditors will receive in-kind distributions of BTC and ETH as outlined in the approved Plan
— Celsius (@CelsiusNetwork) January 5, 2024
Back in July 2022, Celsius Network faced a liquidity crisis due to the downturn in the crypto market, leading to a freeze on withdrawals.
As a result, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
Since then, Celsius has been working towards a settlement plan that allows qualified users to withdraw 72.5% of their crypto holdings until February 28.
Court documents from September revealed that approximately 58,300 users held a total of $210 million in what the court classified as “custody assets.”
Meanwhile, Alex Mashinsky, the founder and former CEO of Celsius Network, who is currently out on bail after being arrested on fraud charges, is scheduled to face a jury trial on September 17.
Last month, Judge Martin Glenn granted Celsius the permission to proceed with a second alternative previously approved by Celsius’ creditors, which involves the creation of a public company dedicated solely to Bitcoin mining.
According to the new arrangement, creditors will receive a portion
Read more on cryptonews.com
