Bankrupt Celsius Network Unstakes Ethereum to Distribute Assets to Creditors

According to Decrypt, bankrupt crypto lender Celsius Network has begun the process of unstaking its Ethereum holdings to ensure ample liquidity when distributing assets to its creditors. The company announced on Twitter that it has started recalling and rebalancing assets in preparation for the distributions. Celsius Network accounts for 32% of ETH awaiting withdrawal, which amounts to 206,300 ETH, worth over $466 million at current prices. The firm filed for Chapter 11 bankruptcy protection in July 2022, following the crypto market downturn caused by the collapse of Terra. A customer repayment plan, approved by a judge in November 2023, will return between 67% and 85% of creditors' investments, with approximately $2 billion worth of Bitcoin and Ethereum to be distributed among the company's creditors. Celsius Network's former CEO, Alex Mashinsky, was arrested in July 2023 and indicted on seven charges, including securities fraud, commodities fraud, and wire fraud. His trial is scheduled for September 17, 2024.