In order to make it easier for its creditors to receive their assets, the bankrupt cryptocurrency lender Celsius Network said today on X that it intends to unstake its current Ethereum ETH +1.68% holdings.
In a subsequent X post, Celsius stated that the “significant” unstaking event is slated to occur within the next few days. According to the post, the bankrupt company’s staked Ethereum holdings have given it a source of cash to help with costs incurred during its restructuring process.
In July 2022, Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. This was a response to the lender being forced to freeze withdrawals due to a liquidity crisis brought on by the rapidly declining cryptocurrency market.
Celsius has made its vault available to qualifying users to withdraw 72.5% of their cryptocurrency until February 28th, in accordance with the settlement plan that was approved. In September of last year, the court received a statement stating that around 58,300 users possessed $210 million in assets classified as “custody.”
On September 17, a jury trial is scheduled for Alex Mashinsky, the founder and former CEO of Celsius, who was detained on suspicion of fraud and is currently free on bond.