Restructuring Crypto Lender Celsius Set to Unstake $470M Worth of Ethereum

By: Eva Baxter

The crypto lending platform, Celsius, which has recently filed for bankruptcy, has announced that it will unstake approximately 206,300 Ethereum, valued at about $470 million. This move is part of its asset distribution strategy to settle with its creditors. This significant unstaking activity is expected to occur in the upcoming days. The company had been earning substantial staking rewards income by using its staked Ethereum holdings, which helped to balance certain expenses during the restructuring process.

Following the announcement, data indicated that the lender plans to withdraw nearly $470 million in Ethereum, corresponding to 32% of all Ethereum currently awaiting withdrawal. The company is listed among the top 10 organisations that have unstaked their Ethereum since withdrawals were enabled last year, with a total of 40,249 ETH withdrawn to date.

This decision by Celsius has resulted in a significant surge in the Ethereum validator exit queue. The wait time is said to have extended to around six days due to the process. Despite all this, the company's recent progress in restructuring and returning assets to customers is showing some positivity. A court-approved restructuring plan could potentially assist creditors in recovering up to 79% of their holdings.

Many fear that these actions might amplify the selling pressure on Ethereum, the second-largest digital currency by market capitalization. Previously, Celsius sold off $250 million worth of digital assets, including Ethereum, over a period of 30 days.