Bankrupt crypto lender Celsius Network will divest its existing Ethereum holdings to “ensure more liquidity” as it distributes its assets to creditors.
In a tweet, Celicius Networks announced that it has “started the process of pooling and balancing assets” in preparation for asset distribution.
It stated that it will dispose of existing ETH holdings “to offset certain costs incurred during the restructuring process”.
According to data from Nansen, Celsius holds 32 percent of the ETH expected to be mined – 206,300 ETH, more than $466 million at current prices.
ETH withdrawal queue. Image: Nansen
Celsius filed for Chapter 11 bankruptcy protection in July 2022 due to the collapse of Terra in the wake of the crypto market crash.
A customer payment plan that would return 67% to 85% of lenders' investments was approved by a judge in November 2023, approximately $2 billion. Bitcoin And Ethereum Distribution among the company's creditors.
The company's former CEO, Alex Mashinsky, was arrested in July 2023 and charged with seven counts of securities fraud, securities fraud and wire fraud. The trial is set for September 17, 2024.
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