Celsius Network, currently facing bankruptcy, intends to unstake Ethereum assets valued at $227 million to aid in distributing funds to its creditors.
In Brief
The Celsius Network is set to release its Ethereum holdings, which are estimated to be around $227 million, as part of their efforts to allocate assets to those owed money.
Cryptocurrency lender Celsius Network Creditors who qualify will soon receive their share of the distributions.
Celsius holds approximately $227 million worth of Ethereum, which has provided a revenue stream during its restructuring while helping to alleviate some of its financial burdens. Bitcoin (BTC) and Ethereum (ETH) as outlined in the approved plan.
As per data from Nansen, Celsius has around 206,300 ETH pending for withdrawal, making up about 32% of all ETH currently in the withdrawal line. So far, it has successfully withdrawn 40,249 ETH.
In July 2022, Celsius sought protection through the US Bankruptcy Court for the Southern District of New York as a response to the turbulent cryptocurrency market, which forced it to halt withdrawals amid a liquidity crunch.
Celsius filed for Chapter 11 bankruptcy Celsius Network is moving forward with its reorganization strategies.
Following the approved restructuring plan, eligible users can withdraw 72.5% of their cryptocurrency holdings until February 28. A court document from last September indicated that approximately 58,300 users held custody assets worth $210 million.
Celsius received consent from US bankruptcy judge Martin Glenn regarding its new direction towards Bitcoin mining, allowing them to modify the originally sanctioned bankruptcy framework, indicating that creditor and client conditions have not worsened.
Recently, Celsius Network obtained The emergence of a new publicly traded Bitcoin mining company is underway, which plans to offer Celsius Network customers an equity stake in the enterprise. There are also initiatives aimed at improving the distribution of liquid cryptocurrencies to account holders, with expectations to exit bankruptcy in early 2024.
Celsius announced plans to establish As Celsius Network begins the asset distribution process to eligible creditors, it shows progress in its reorganization efforts and aims for a successful return from bankruptcy later this year.
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In line with the Trust Project guidelines Alisa, a passionate journalist at Cryptocurrencylistings, covers topics in cryptocurrency, zero-knowledge proofs, investments, and the broad field of Web3. With a knack for identifying emerging trends and technologies, she provides thorough reporting to engage and inform readers in the fast-paced world of digital finance.
