Bankrupt Crypto Lender Celsius Staked $75 Million Of ETH On Figment

Key Points:

• Last week, the crypto lender Celsius Network staked $75 million in ETH through Figment.
• While Celsius withdrew some of its staked ETH in April, the rationale for this deposit is still unclear.
• The payment is one of the biggest financial transfers for the crypto lender since it filed for Chapter 11 bankruptcy protection in July.

According to data from Arkham Intelligence, bankrupt crypto lender Celsius has begun staking Ethereum (ETH).

Blockchain statistics showed that Celsius staked nearly $75 million of ETH last week using Figment, an institutional-grade staking service.

According to Arkham data, Celsius sent around 40,928 ETH to a crypto wallet in fourteen transactions on May 10 and May 12. According to Ethereum blockchain explorer Etherscan, the account is held by Figment, who placed the funds into staking contracts. Tom Wan, a research analyst at 21Co, confirmed the Arkham claim.

The payment is one of the biggest financial transfers for the crypto lender since it filed for Chapter 11 bankruptcy protection in July.

While Celsius withdrew a portion of its staked ETH in April, the rationale for this deposit is still unclear. At the time, industry participants regarded this as an insolvent corporation consolidating its assets.

Celsius is still one of the largest corporations with an ETH portfolio. The lender has 410,378 ETH invested, according to the Arkham Intelligence dashboard.

Nonetheless, Celsius transactions are not unexpected considering that some organizations who withdrew their staked ETH have been re-staking it. According to Nansen’s dashboard, the liquid staking derivatives protocol Lido has dominated the charts in staked ETH withdrawals and deposits during the last two weeks.

Celsius was one of the crypto enterprises that went bankrupt after the abrupt collapse of blockchain project Terra and the ensuing crash of crypto markets a year ago, causing the company to halt customer withdrawals.

The bankruptcy court is organizing an auction to sell the company and its assets to prospective investors, including digital asset investment firm NovaWulf and private equity behemoth Apollo Global Management, as part of the restructuring process.

Celsius may receive incentives on its digital asset holdings by depositing to a staking service throughout the restructuring process. Figment has an average yearly staking reward of 5.6%.

Since withdrawals were authorized on April 12, the overall amount of ETH removed is 2.67 million, while the total number of ETH deposited is 3.46 million. According to Token Unlocks statistics, this equates to a net staking balance of 785,000 ETH.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Harold

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