Celsius set to unlock $470M Ethereum for creditor repayments – CoinJournal
Embattled crypto lending platform Celsius is making waves as it unveils plans to recall and rebalance its crypto assets, particularly Ethereum (ETH), in preparation for timely creditor distributions.
With the platform in bankruptcy court since July 2022, customers eagerly await the return of their funds. This development sheds light on Celsius’s strategic moves and their impact on the crypto market.
Celsius has officially commenced the process of recalling and rebalancing its crypto assets, marking a crucial step in the platform’s journey since filing for Chapter 11 in 2022. The primary focus lies on unlocking Ethereum (ETH) holdings, currently staked for valuable rewards income.
As part of its recovery plan, Celsius is set to unstake a substantial 206,300 ETH, valued at an impressive $468.5 million in today’s market. The objective is to offset restructuring costs and facilitate the much-awaited distributions to creditors. This move aligns with the company’s commitment to providing transparency amid its restructuring process.
With nearly one-third of the pending ETH withdrawal queue belonging to Celsius, amounting to a staggering 206,300 ETH, market speculations arise. Some express concerns about a potential “dump” of Ethereum on the market, fearing adverse effects on its value. However, contrasting opinions highlight the positive long-term impact, anticipating relief for Ethereum as Celsius navigates its restructuring journey.
This strategic shift also follows Celsius’s earlier announcement of a scaled-back post-bankruptcy strategy, focusing on Bitcoin mining. However, the abrupt change in direction drew displeasure from the presiding judge overseeing the company’s bankruptcy proceedings.
In conclusion, Celsius’s move to unstake a substantial amount of Ethereum signifies a pivotal moment in its efforts to navigate the challenges posed by the crypto contagions of 2022. As the crypto lending platform takes concrete steps toward creditor repayments, the industry watches closely to understand the implications of this significant shift in assets. The liberated Ethereum holds the key to unlocking value for creditors, marking a potential turning point for Celsius in its post-bankruptcy strategy.
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