ETH Price Rise Facilitates Asset Distribution for Celsius
Celsius, the defunct crypto lender that filed for Chapter 11 bankruptcy protection in July 2022, is preparing for a significant unstaking event in the next few days. The company has been able to generate income by staking its Ethereum holdings to offset costs during its restructuring process.
Court-Approved Settlement Plan Allows Withdrawals
Following the court-approved settlement plan, Celsius has allowed qualified users to withdraw 72.5% of their crypto assets until February 28th. The court filing from September 2021 revealed that around 58,300 users held $210 million in custody assets.
Founder Alex Mashinsky Faces Jury Trial
Alex Mashinsky, the founder and former CEO of Celsius, who was arrested on fraud charges and is currently out on bail, is scheduled to face his jury trial on September 17th.
About the Author
Danny Park is an East Asia reporter at The Block, specializing in Web3 developments and crypto regulations. He has previously covered major events in the crypto industry and holds a Bachelor’s degree in Journalism and Business Marketing.
Hot Take: Celsius Navigates Bankruptcy with Ethereum Staking
Celsius, a crypto lender facing bankruptcy, has been able to generate income by staking its Ethereum holdings during its restructuring process. This strategy has allowed the company to offset costs and facilitate asset distribution to creditors. As Celsius prepares for a significant unstaking event in the coming days, qualified users are already able to withdraw a portion of their crypto assets under the court-approved settlement plan. However, founder Alex Mashinsky’s upcoming jury trial adds another layer of uncertainty to Celsius’ future. With these challenges, Celsius continues to navigate the complex landscape of bankruptcy and legal proceedings in the crypto industry.
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