Celsius Network to pay creditors to return ETH holdings
Newly launched cryptocurrency lending platform Celsius Network has announced to its 243,000 social media followers that it is delisting its Ethereum holdings as part of preparations for an asset sale.
One post reads, “Significant unexpected activity in the next few days will open ETH to ensure timely distribution to lenders.”
Ethereum Staking Assistant Celsius Reconfiguration
In a series on X (formerly Twitter), Celsius expressed its intention to unload all of its Ethereum holdings, hinting that $227.03 million in rewards from its large volume helped the asset to cover legal fees in the bankruptcy process.
“Celsius will divest ETH holdings that contributed significant reward income to the asset to offset certain costs incurred during the restructuring process.”
However, the response from the crypto community online has been mixed. One X (formerly Twitter) user who goes by the name APE responded that it was “too many bags to nuke.” Additionally, he shared a screenshot showing roughly $227.03 million worth of ETH in his Celsius wallet.
At the time of publication, the price of Ethereum is $2,287.
Read more: Solana vs. Ethereum: The Ultimate Comparison
Celsius in the spotlight from July 2022
On September 6, BeinCrypto reported that a judge ordered the freezing of several bank accounts and assets of former Celsius CEO Alex Mashinsky.
The asset freeze comes as Mashinsky is accused of defrauding Celsius investors. In July, law enforcement arrested him on several charges, including securities fraud, but he maintained his innocence.
The property freeze prevents Mashinsky from accessing savings. Also when the real estate is in dire need of money to pay for the legal defense.
The former CEO of Celsius After his arrest on July 13, he was released on a $40 million bond. Mashinsky pleaded not guilty the next day to multibillion-dollar fraud and market manipulation.
Prosecutor Mashinsky portrayed Celsius as a bank where investors could safely deposit cryptocurrencies and earn interest. But he operated a risky investment fund while lying about his financial position.
Read more: Ethereum Name Service (ENS): Everything you need to know
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