Key Developments:
- Celsius transfers nearly $36 million in Ethereum to Coinbase and FalconX.
- The company’s two staking wallets still hold over 557,000 Ethereum, valued at around $1.3 billion.
Celsius’ Significant Ethereum Transactions
Yello Paradisers! Celsius, the now-defunct crypto lending platform, has made notable moves by depositing a substantial amount of Ethereum (ETH) into exchanges. According to Lookonchain, a crypto tracking service, Celsius transferred $30.34 million worth of ETH to Coinbase and an additional $5.13 million to FalconX on Monday.
Celsius’ Current Ethereum Holdings
Despite these transfers, Celsius’ two staking wallets continue to hold a significant amount of Ethereum, totaling approximately 557,081 ETH, valued at around $1.3 billion. This holding represents a considerable portion of the company’s assets.
Celsius’ Bankruptcy and Legal Challenges
Celsius filed for bankruptcy in July 2022 following a dramatic 99% drop in its native token, CEL, and subsequent inability to fulfill withdrawal requests. The company’s founder, Alex Mashinsky, was arrested and charged with multiple counts of fraud in the US. Additionally, the U.S. Securities and Exchange Commission (SEC) has sued Mashinsky for allegedly raising billions of dollars through deceptive practices and offering unregistered securities.
New Corporate Spinoff and Repayment Plan
A judge recently approved a new plan from Celsius aimed at generating funds to repay creditors. This plan involves the creation of a new entity, “NewCo,” with a $1.25 billion balance sheet, including $450 million in liquid crypto assets.
Unstaking Ethereum for Creditor Repayment
Celsius announced earlier this month that it has begun the unstaking process for its Ethereum holdings. This move is part of the company’s strategy to ensure sufficient liquidity for asset distributions. The unstaking of Ethereum, which has been a source of income for the estate, is intended to offset costs incurred during the restructuring process. The upcoming significant unstaking activity will unlock ETH to facilitate timely distributions to creditors.
Plan for Creditor Distributions
As per the approved plan, eligible creditors are set to receive in-kind distributions of Bitcoin (BTC) and Ethereum (ETH). This distribution is part of Celsius’ efforts to address its financial obligations and provide restitution to its creditors.
In the dynamic world of crypto, information is power. But what if you could have more than just information? Get insider News we use for trading, unlock access to private news channels:
1️⃣🔍Digest
Time is precious. Get the day’s pivotal events, distilled to perfection. No noise, just essence.
2️⃣🧠Expert
Ever wondered about the ‘why’ behind the news? Our ParadiseTeam experts decode the intricacies for you, giving you an edge.
3️⃣🔐Exclusive
Step into the realm of elite insights. Content that’s not just informative, but transformative.
Why be a spectator when you can lead the charge? With MCP🗞NEWS PRIVATE channels, you’re not just better informed; you’re ahead. CLICK HERE to find out more about what you will get, UNLOCK the PRIVATE sections, and embark on a crypto journey like no other!
