Celsius Network Plans to Stake Ethereum to Repay Creditors
Bankrupt cryptocurrency lender Celsius Network has announced its plans to unstake its Ethereum (ETH) holdings in order to generate liquidity for repaying its investors. This move is part of the lender’s process of recalling and rebalancing assets to repay its creditors. Celsius Network will be unstaking its existing ETH holdings, which will unlock ETH for timely distributions to the creditors. The lender currently has approximately 206,300 ETH pending withdrawal, worth around $468.5 million, with a significant portion belonging to Celsius.
The Downfall of Celsius Network
In 2022, Celsius Network filed for bankruptcy after suspending customer withdrawals. It was revealed that the lender had a $1.2 billion deficit in its balance sheet. Furthermore, its co-founder and former CEO, Alex Mashinsky, faced legal troubles and was charged with multiple counts of fraud and conspiracy. However, with the approval of its restructuring plan by Judge Martin Glenn, Celsius Network is now cleared to exit bankruptcy.
Restructuring Plan Approved, Celsius to Repay Creditors with Crypto Assets
The unstaking of ETH by Celsius Network will provide the liquidity required to repay its creditors as part of its approved restructuring plan. This plan allows the lender to repay its customers using crypto assets and stocks in a new publicly listed Bitcoin mining company. With this move, Celsius Network can move forward and fulfill its obligations to its investors.
Hot Take: Celsius Network Takes Action to Repay Creditors
Celsius Network has taken decisive steps to repay its creditors by planning to unstake its Ethereum holdings. By unlocking liquidity through this process, the lender aims to ensure timely distributions to its investors. This move comes after Celsius Network’s bankruptcy filing and legal issues faced by its former CEO. With the approval of its restructuring plan, Celsius Network can now move forward and focus on its commitment to repaying its customers using crypto assets and stocks. This action signifies a significant development in the recovery and restructuring of Celsius Network.
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