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Celsius Network to Unstake All Ethereum Holdings to Pay Back Creditors

BeInCryptoBeInCrypto2024/01/04 23:05
By:By Ciaran Lyons 4 January 2024, 22:50 GMT+0000Updated by Ciaran Lyons 4 January 2024, 22:50 GMT+0000

The now-defunct cryptocurrency lending platform Celsius Network declares to its 243,000 social media followers that as part of preparing for the asset preparation process, it will unstake its Ethereum holdings.

“The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors,” a post stated.

Ethereum Staking Assisted Celsius Restructuring

In a series of posts on X (formerly Twitter), Celsius declares its intention to unstake all Ethereum holdings, hinting that the rewards from the substantial staked amount, totaling $227.03 million, have aided the estate in covering legal fees during the bankruptcy process.

“Celsius will unstake existing ETH holdings, which have provided valuable staking rewards income to the estate, to offset certain costs incurred throughout the restructuring process.”

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However, the response has been mixed from the crypto community online. One X (formerly Twitter) user who goes by the name APE responded that it is an “awful lot of bags to nuke.” Furthermore, he shared a screenshot showing the approximate $227.03 million worth of ETH in the Celsius wallet .

At the time of publication, Ethereum’s price stands at $2,287.

Ethereum price Chart 1 Month. Source: BeInCrypto

Read more: Solana vs. Ethereum: An Ultimate Comparison

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Celsius In the Spotlight Since July 2022

On September 6, BeInCrypto reported that a judge ordered several bank accounts and a residential property belonging to former Celsius CEO Alex Mashinsky to be frozen.

The asset freeze comes as Mashinsky faces criminal charges for allegedly defrauding Celsius investors. In July, law enforcement arrested him on various charges, including securities fraud, yet he asserts his innocence.

The asset freeze blocks Mashinsky from accessing savings. Furthermore, real estate at a time when he desperately needed liquidity to pay for his legal defense.

The former Celsius chief won release on a $40 million bond following his July 13 arrest . Mashinsky pleased not guilty to multibillion-dollar fraud and market manipulation schemes the following day.

Prosecutors allege that Mashinsky portrayed Celsius as a bank where investors could safely deposit crypto and earn interest. However, he allegedly operated a risky investment fund while lying about its financial position.

Read more: Ethereum Name Service (ENS): Everything You Need To Know

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions , Privacy Policy , and Disclaimers have been updated.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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