Coinbase and FalconX receive over $90m from Celsius through unstaked Ethereum transactions.
In the last week, Celsius transferred a substantial amount of Ethereum, totaling 40,000 ETH, which is estimated to be worth over $90 million, to its major creditors, Coinbase and FalconX. However, according to Arkham Intelligence, Celsius still holds a significant amount of Ethereum in its Staked ETH account, with approximately 59,000 ETH valued at over $133 million. This recent move by the bankrupt lender is part of a strategic plan to unlock a significant portion of its Ethereum holdings, as part of its comprehensive plan to allocate assets to its creditors during its bankruptcy proceedings.
Celsius faced a severe liquidity crisis after filing for Chapter 11 bankruptcy protection in July 2022. This crisis was further exacerbated by the decline in the cryptocurrency market following the UST crash and the collapse of FTX. By unstaking Ethereum, Celsius aims to generate the liquidity necessary to navigate the costs associated with the restructuring process and ensure that creditors are paid on time.
On Boxing Day, the court approved Celsius Network and its unsecured creditors to proceed with the “MiningCo Transaction,” which is a specific part of Celsius’s restructuring plan. This approval, documented in court filings, allows Celsius to move forward with its plan despite objections from the United States Trustee, a group of borrowers, and individual creditors such as Cathy Lau and Anne Yeilding. The court’s decision to sanction Celsius’s plan, along with the company’s recent efforts to unstake ETH, signifies a significant milestone in its ongoing bankruptcy management and operational restructuring.
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