Celsius Announces Discontinuation of ETH Staking Activities

According to a new notice published late on the evening of January 4, 2024 (UTC), Celsius, a company operating in the lending industry, announced its decision to stop staking a large amount of Ethereum (ETH) in next time. This news comes after the company’s bankruptcy, which took place in mid-2022.

It was reported in early 2023 that Celsius had gained control of all the crypto assets the company held in bankruptcy, valued at up to $4.2 billion. After converting a large portion of altcoins to major cryptocurrencies such as Bitcoin (BTC) and Ethereum, Celsius has begun liquidating these assets in recent months, at the same time that cryptocurrency markets have recovered. In December, the company sold nearly $250 million in crypto, mostly in the form of ETH.

According to the latest statement from Celsius, the decision to stop staking ETH is to ensure liquidity to serve the process of redistributing assets to creditors, as well as paying operating costs during the business restructuring process.

In preparation of any asset distributions, Celsius has started the process of recalling and rebalancing assets to ensure ample liquidity

— Celsius (@CelsiusNetwork) January 4, 2024

Celsius also emphasized that eligible creditors will be compensated with assets in the form of BTC and ETH, according to the previous plan. The restructuring plan includes the establishment of a new legal entity called NewCo, managed by the Fahrenheit organization, which acquired Celsius in May 2023. However, this plan still has to wait for approval by the US bankruptcy court and there is no specific time frame for asset reallocation.

Related: Celsius has Sold a Large Amount of Assets in the Past Month

This information is making the cryptocurrency community on social network Twitter go crazy, constantly sharing about Celsius’ decision to stop staking a large amount of Ethereum, and sharing the company’s staking wallet containing nearly 800 million USD of ETH.

Gm, withdrawal queue gonna be stacked for a whilehttps://t.co/MMK00VKpE4 https://t.co/oiZMC7IuU9 pic.twitter.com/vkBc4YDiHw

— DeFiyst (@DeFiyst) January 4, 2024