Celsius pays Coinbase and FalconX over $90 million in uncollateralized Ethereum
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In the past week, Celsius transferred a total of 40,000 Ethereum, estimated to be worth more than $90 million, to its key creditors Coinbase and FalconX.
according to Arkham Intelligence, Celsius still retains a large amount of Ethereum in his Staked ETH account, totaling approximately 59,000 ETH, worth more than $133 million. The bankrupt lender’s recent activity is a strategic move to free up a sizeable portion of its Ethereum holdings. The decision is part of a comprehensive plan to facilitate the distribution of assets to the company’s creditors, an important step in its bankruptcy proceedings.
After filing for Chapter 11 bankruptcy protection in July 2022, Celcius fell into a severe liquidity crisis, which was exacerbated by the downturn in the cryptocurrency market following the collapse of UST and the collapse of FTX. The decision to divest Ethereum will likely generate the liquidity needed to cover costs associated with the restructuring process and ensure creditors receive their dues on time.
On Boxing Day, the court gave Celsius Network and its associated unsecured creditors permission to proceed with the MiningCo transaction.The decision was recorded in court Filingallowing Celsius to move forward with certain parts of its restructuring plan.
The court ultimately approved Celsius’ plan despite objections from the U.S. trustee, a group of borrowers and individual creditors including Cathy Lau and Anne Yeilding. This approval, coupled with the company’s recent ETH staking efforts, is an important step in the company’s ongoing efforts to manage bankruptcy and restructure its operations.
