- Celsius Network has announced plans to recall and rebalance its crypto assets.
- This includes massive ETH unstaking “in the next few days.”
- The move is meant to “ensure ample liquidity” ahead of creditor payments.
Bankrupt crypto lender Celsius Network has announced plans to recall and rebalance its crypto assets to ensure ample liquidity “in preparation of any asset distributions” to its creditors.
The move comes after a New York Bankruptcy bank endorsed the company’s restructuring plan on November 7. Per the plan, Celsius intends to reimburse its creditors $2 billion in Bitcoin and Ethereum, along with company stocks of its new creditor-owned BTC mining company, NewCo.
Celius’s Plan to Unstake $464M Ethereum
According to an announcement dated January 5 on X (Twitter), among the crypto assets Celsius intends to “recall and rebalance” include its Ethereum holdings.
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“Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process. The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors,” the company wrote.
While the Celsius team did not reveal how much ETH would be unstaked, Blockchain analytics firm Nansen reports that 32% of the ETH in the pending withdrawal queue currently belongs to the crypto lender.
The estimation puts the Ethereum balance at 206,300 ETH, which was worth approximately $464,934,184 at the time of writing. The analytics firm further noted that Celsius has already withdrawn 40,249 ETH.
Following the planned unstaking, Celsius reiterated that “eligible creditors will receive in-kind distributions of BTC and ETH as outlined in the approved Plan.” In the meantime, ex-Celsius CEO Alex Mashinsky is scheduled to begin trial on September 17.
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Read why Celsius’s BTC mining restructuring plan recently hit a snag:
Celsius Bitcoin Mining Restructuring Plan Hits a Snag
Stay updated on how an ex-Celsius executive pleaded guilty:
Ex-Celsius Exec Pleads Guilty, Cooperates Against Mashinsky
