Celsius will return 200,000 ETH mortgages worth $460 million and repay debts

The bankrupt cryptocurrency lending platform Celsius Network is currently undergoing a restructuring plan and received court approval on the 29th last week, planning to transform into a newly listed company called "Mining NewCo" Bitcoin mining company. The new company has up to $225 million in initial capital and aims to increase its debt repayment capacity to creditors.

Today, Celsius announced on This staking of Ethereum provides them with significant reward income that helps cover some of the costs of the restructuring process.

Celsius said: Unpledge activities will be conducted in the next few days to unlock ETH to ensure timely distribution to creditors.

They emphasized that eligible creditors will receive “in-kind” distributions of BTC and ETH in accordance with the approved plan.

How many Ether coins will be released from pledge?

According to information previously posted by the on-chain analysis account lookonchain, Celsius’s pledge address is shown on the DeBank platform to hold approximately 206,300 ether coins, with a valuation of approximately US$460 million. The exact amount of ether held by Celsius is currently unclear.

According to the latest statement, these Ether coins will be unlocked in the coming days to ensure timely distribution to creditors. Since it is a physical distribution, it will not directly cause selling pressure on the market, but it cannot be ruled out that creditors will sell the acquired assets.

How long does it take to unstake?

Although Ethereum now allows users to withdraw their staked ether at any time, the process is not immediate. For entities that stake nodes, such as Celsius, the time it takes to unstake depends on the amount of ETH they staked and the number of validators on the entire network to be withdrawn. Therefore, unstaking may take some time to complete, especially if there are a large number of validators on the network waiting to be withdrawn.

Currently, according to data from the wenmerge platform, the time required for verification node evacuation is approximately 5 to 6 days. Therefore, if Celsius intends to unsecure all of its ETH in the next few days, they may actually need to wait at least 5-6 days before they can distribute these ETH to creditors.

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