Celsius to Unstake Existing Ethereum Holdings

Cryptocurrency lender Celsius Network, which has previously declared bankruptcy, has announced that it will unstake its Ethereum holdings to distribute assets to creditors.

In a recent post, Celsius stated that the unstaking event will occur in the upcoming days and is deemed “significant.”

The company has been using its staked Ethereum as a source of income to cover expenses during its restructuring period.

Celsius filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York in July 2022 due to the crypto market downturn and liquidity issues that led to a halt on withdrawals.

Following court approval of their settlement plan, Celsius has allowed qualified users to withdraw 72.5% of their crypto until February 28.

Court documents from September revealed that there were 58,300 users with a total of $210 million in “custody assets.”

At the same time, Alex Mashinsky, the founder and former CEO of Celsius who was arrested for fraud charges and is currently out on bail, will face a jury trial on September 17.