Bankrupt Crypto Lender Celsius will remove the bet 206,300 Ethereumvalued at about $470 million, as part of efforts to facilitate the distribution of assets to creditors, according to a Jan. 4 report. statement on the social media platform X (formerly Twitter).
Celsius said the planned "significant" event will occur in the coming days and further revealed that his The staked Ethereum holdings provided the failed company with โvaluable staking reward incomeโ to offset certain costs incurred during its restructuring process.
Following the news, Nansen's Ethereum Shanghai (Shapella) upgrade panel shows that the lender wants to withdraw 206,300 ETH, or 32% of all ETH awaiting withdrawal, valued at almost $470 million.
The dashboard further shows that the company is among the top 10 companies that have withdrawn their staked ETH since withdrawals were enabled last year. Celsius has withdrawn a total of 40,249 ETH at press time.
Furthermore, Celsius's decision has caused a notable increase in the Ethereum validator output queue. According to data from beaconcha.in, the queue has increased to more than 16,000 today, a record, and the waiting time has extended to approximately six days.
Meanwhile, the recent announcement signifies progress in Celsius' restructuring process and the imminent return of client assets. The court has already approved a restructuring plan that could allow creditors to recover up to 79% of their stakes.
However, critics have arisen due to the lack of a disclosed effective distribution date, and customers are expressing fatigue with the continuous readiness updates.
What does this mean for the price of ETH?
Members of the crypto community are concerned that the Celsius measurement could increase selling pressure on the second largest digital asset by market capitalization.
The last December, cryptoslate reported which the bankrupt lender sold $250 million in digital assets, including Ethereum, in 30 days. At the time, observers suggested that the company was selling to capitalize on MiningCo, a Bitcoin mining company that would be owned by the failed company's creditors.
However, Celsius said: โEligible creditors will receive in-kind distributions of BTC and ETH as described in the Approved Plan.โ
