Celsius Shifts Millions in Ethereum Amid Restructuring
A defunct crypto lending platform, formerly known as Celsius, made significant transactions on Monday.
A wallet associated with the platform deposited $30.34 million worth of Ethereum (ETH) into Coinbase, as reported by the crypto tracker Lookonchain. Another notable deposit was $5.13 million worth of ETH into FalconX, a crypto exchange.
The #Celsius wallet deposited 13K $ETH($30.34M) to #Coinbase and 2,200 $ETH($5.13M) to #FalconX again in the past 10 hours.
Currently, 2 staking wallets of #Celsius still hold 557,081 $ETH($1.3B).
Address:https://t.co/3gGOucC9gYhttps://t.co/zodN4gzVHKhttps://t.co/Jjt9fCN2Ej pic.twitter.com/E9DIZ9KDAH
— Lookonchain (@lookonchain) January 23, 2024
Celsius, now facing the aftermath of filing for bankruptcy in July 2022, witnessed a sharp decline of 99% in its native token, CEL. This downfall rendered the platform incapable of meeting withdrawal demands.
The founder of the project, Alex Mashinsky, encountered legal troubles in July, leading to his arrest on multiple fraud charges in the U.S. Concurrently, he faces a lawsuit from the U.S. Securities and Exchange Commission (SEC) for alleged deceit in fundraising activities by providing misleading information and offering unregistered securities.
A recent development involves Celsius’ approval for a new venture named “NewCo.” This initiative aims to generate funds for a mining and staking corporate spinoff designed to repay creditors. NewCo is anticipated to have a balance sheet of $1.25 billion, with $450 million in liquid crypto assets.
READ MORE: 3 Risks That May Impact Stock Market, According to UBS
Celsius disclosed its ongoing process of unstaking Ethereum holdings, which have been a source of income for its estate over the past year and a half. The unstaking activity is part of preparations for asset distributions, with the goal of ensuring ample liquidity.
The company plans to unstake existing ETH holdings that provided staking rewards income to offset certain costs incurred during the restructuring process. The substantial unstaking activity in the next few days aims to unlock ETH promptly, facilitating timely distributions to creditors. Eligible creditors are reminded that they will receive BTC and ETH in-kind distributions as outlined in the approved plan.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
