Bankrupt cryptocurrency lender Celsius announced on January 4 that it will unstake 206,300 Ethereum worth approximately $470 million in an effort to facilitate asset distribution to creditors. am. name on social media platform X (formerly Twitter).
Chelsea have revealed that a “significant” unstaking event planned will take place in the coming days. Staked Ethereum holdings provided the failing company with “valuable staking reward income” to offset certain costs incurred during the restructuring process.
Following this news, Nansen’s Ethereum Shanghai (Shapella) upgrade dashboard showed that lenders are seeking to withdraw 206,300 ETH, or approximately $470 million worth, or 32% of the total ETH pending withdrawal.
The dashboard also shows that this company is among the top 10 companies that have withdrawn their staked ETH since withdrawals were enabled last year. Celsius has withdrawn a total of 40,249 ETH as of press time.
Additionally, Chelsea’s decision resulted in a noticeable spike in the Ethereum validator exit queue. According to data from beaconcha.in, the queue today has surged to over 16,000, a record high, with waiting times also stretching to around six days.
Meanwhile, the latest announcement marks progress in Chelsea’s restructuring journey and the imminent return of client assets. The court has already approved a restructuring plan that will allow creditors to recover up to 79% of its holdings.
nevertheless, Criticism It emerged as customers expressed fatigue with constant preparation updates as the expiration date was not disclosed.
What does this mean for ETH price?
Members of the cryptocurrency community are concerned that Chelsea’s move could increase selling pressure on the second-largest digital asset by market capitalization.
Last December, CryptoSlate The bankrupt lender reported the sale. Secure $250 million in digital assets, including Ethereum, in 30 days. At the time, observers suggested the company was selling MiningCo, its Bitcoin mining company, to capitalize, which would then be owned by the failed company’s creditors.
However, Celsius said, “Eligible creditors will receive an in-kind distribution of BTC and ETH as outlined in the approved plan.”