Bankrupt Celsius Network unlocks $227 million worth of Ethereum stake and distributes assets to creditors
Posted: January 5, 2024 3:40 AM Updated: January 5, 2024 3:40 AM
Correction and fact check date: January 5, 2024, 3:40 AM
briefly
Chelsea Network plans to release $227 million worth of its existing Ethereum holdings in the coming days to facilitate asset distribution to creditors.
Celsius Network, a cryptocurrency lender currently undergoing bankruptcy proceedings, announced its intention to release its existing Ethereum holdings to facilitate asset distribution to creditors. The unstaking event is scheduled to take place in the next few days.
Eligible creditors will receive distributions of Bitcoin (BTC) and Ethereum (ETH) as outlined in the approved plan.
Currently, Celsius holds approximately $227 million worth of Ethereum assets. Staked Ethereum holdings served as a source of income for the defunct company, helping offset costs incurred during the restructuring process.
According to Nansen’s data, Chelsea has a total of 206,300 ETH waiting to be withdrawn, representing 32% of all ETH currently in the withdrawal queue. Currently, Chelsea has successfully withdrawn 40,249 ETH.
Celsius filed for Chapter 11 bankruptcy protection in July 2022 in the U.S. Bankruptcy Court for the Southern District of New York. The decision follows challenges posed by volatile cryptocurrency markets, which led lenders to freeze withdrawals amid a liquidity crisis.
Chelsea Network pushes ahead with reorganization plans
Under the approved settlement plan, Celsius will allow eligible users to withdraw 72.5% of their cryptocurrency by February 28. According to court filings in September, approximately 58,300 users held $210 million that the court classified as “custodial assets.”
Recently, Celsius Network received approval from U.S. Bankruptcy Judge Martin Glenn for its proposed transition to Bitcoin mining. The company was granted permission to deviate from its originally approved bankruptcy plan, citing the new reorganization as an indicator that the situation for its creditors and customers has not worsened.
Chelsea has announced plans to set up a new publicly traded Bitcoin mining company to offer shares in the company to Chelsea Network customers. There are also plans to enhance the distribution of liquid cryptocurrency to account holders. The company expects to emerge from bankruptcy in early 2024.
By beginning the process of distributing assets to eligible creditors, Chelsea Network furthers its efforts towards a successful reorganization and potential exit from bankruptcy this year.
disclaimer
In accordance with the Trust Project Guidelines, the information provided on these pages is not intended and should not be construed as legal, tax, investment, financial or any other form of advice. It is important to invest only what you can afford to lose and, when in doubt, seek independent financial advice. We recommend that you refer to the Terms of Use and help and support pages provided by the publisher or advertiser for more information. Although MetaversePost is committed to accurate and unbiased reporting, market conditions may change without notice.
About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles
alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles