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

The bankrupt cryptocurrency lender Celsius Network announced today on X that it plans to unstake existing holdings of Ethereum ETH +0.16% 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.