The bankrupt crypto lender, Celsius, has started recalling and rebalancing its assets – which include unstaking nearly $470 million of Ether (ETH) in order to prepare for repaying creditors.
Celsius’ X post confirmed that it will unstake existing ETH holdings to ensure ample liquidity and to offset the expenses of the company’s restructuring process. It said that these staked ETH “have provided valuable staking rewards income to the estate.”
The announcement came as positive news for Celsius’s creditors, who have been waiting to be repaid for the past 18 months.
“The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors,” said Celsius, while reminding that eligible creditors will receive their assets in BTC and ETH as mentioned in its recovery plan.
As per data from Nansen, an onchain data provider and analytics firm, almost one-third of the total ETH in the withdrawal queue belongs to Celsius.
The firm is waiting for its 206,300 ETH to be withdrawn, which amounts to approximately $468.5 million, while it has already withdrawn 40,249 ETH to date.
Celsius, once the biggest cryptocurrency lender, filed for Chapter 11 bankruptcy in July 2022 after being caught in the turmoil that led several crypto companies to become bankrupt.
The firm has been focusing on restructuring since with it aiming to continue operating in Bitcoin mining.
Also Read: Celsius Converts Altcoins to BTC or ETH After SEC Talks
