Bankrupt Crypto Lender Celsius Transfers $75M of Ether to Staking Service Figment

CoinDesk reported that according to blockchain data, Celsius Network, a cryptocurrency lender facing financial difficulties, recently staked approximately $75 million worth of ether (ETH) through Figment, an institutional-grade staking service.

Data from Arkham Intelligence, a crypto intelligence firm, reveals that Celsius transferred around 40,928 ETH to a crypto wallet in fourteen separate transactions between May 10 and May 12. The recipient of these funds is Figment, who subsequently placed the deposited funds into staking contracts as confirmed by the Ethereum blockchain explorer, Etherscan.

This transfer signifies one of the largest fund movements for Celsius since the company sought Chapter 11 bankruptcy protection in July.

Source: Etherscan

Following the unexpected collapse of the blockchain project Terra and the subsequent downturn of the cryptocurrency markets last year, Celsius was among the crypto companies that faced insolvency. This situation led to the company freezing user withdrawals. As part of the restructuring process, the bankruptcy court has organized an auction to sell Celsius and its assets to potential investors, including digital asset investment firm NovaWulf and private equity giant Apollo Global Management.

By depositing funds into a staking service, Celsius can earn rewards on its holdings of digital assets during the ongoing restructuring efforts. Figment, the staking service chosen by Celsius, offers an average annualized staking reward of 5.6%, as stated on its website.

Celsius is leveraging a staking service to earn rewards on its digital asset holdings during the restructuring. Figment, the chosen staking service, offers an average annualized staking reward of 5.6%.

Resources:

CoinDesk

Etherscan