Celsius Shakes The Crypto World: ETH Staking Suspended

The crypto company that went bankrupt, Celsius, has announced it will halt ETH staking operations to facilitate asset allocation for creditors.

As per the announcement posted early on January 5th, 2024, the lending company that went bankrupt in mid-2022, Celsius, declared its intention to start halting staking operations for a significant amount of ETH in the near future.

As reported by CoinNerd, at the beginning of 2023, Celsius gained control over the entirety of the crypto assets held by the company at the time of bankruptcy, valued at $4.2 billion back then. After converting a substantial amount of altcoins into major cryptocurrencies like BTC and ETH, Celsius has begun liquidating these assets in recent months amidst the cryptocurrency market’s recovery. In December alone, the company sold nearly $250 million in crypto, mostly in the form of ETH.

Celsius’s latest statement said that the unstaking of ETH is to ensure liquidity to support the process of reallocating assets to creditors, as well as to cover operating costs during the corporate restructuring process.

Celsius also reiterates that eligible creditors will be compensated with assets in the form of BTC and ETH, as per the earlier plan. The restructuring plan includes establishing a new entity named NewCo, managed by Fahrenheit, the organization that acquired Celsius in May 2023. However, this plan still awaits approval from the US bankruptcy court, with no specified timeline for asset distribution.

The cryptocurrency community on X (Twitter) is abuzz with news of Celsius preparing to halt staking a substantial amount of Ethereum, continuously sharing screenshots of the company’s staking wallet holding nearly $800 million worth of ETH.

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