- Accounts tied to Celsius transferred 40,928 ETH to staking contracts on the platform Figment from May 10 to May 12.
- This 41,000 ETH staked adds to the $300,000 in ETH currently staked on Celsius.
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Celsius Network, a defunct crypto lending platform, transferred 40,928 ETH, or $70 million, to staking service Figment last week, according to data from crypto intelligence firm Arkham Intelligence.
Last week, wallets labeled Celsius Network came back online, depositing millions of dollars of ETH in ETH2 Staking Contracts with Figment.
In total, Celsius sent 30.8K ETH to deposit, worth $56.98M! pic.twitter.com/J7Ja44C65k
— Arkham (@ArkhamIntel) May 15, 2023
The transfer was spread over 14 transactions between May 10 and May 12 and was placed on staking contracts owned by Figment, according to Etherscan. It is considered the largest move of funds for Celsius since filing for Chapter 11 bankruptcy protection in July 2022.
Tom Wan, research analyst for 21co – the parent company of 21shares – further confirmed:
– Tom Wan (@tomwanhh) May 15, 2023
Wan THE audience that this is Celsius’ first move to Figment after a year, saying that Celsius could have used its own staking pool for 40 thousand Ether.
Staking is a process of locking crypto, such as Ether, for a set time to earn rewards for validating transactions and creating network blocks.
While Figment offers about 5.6% of annual staking rewards, according to its website, Celsius has a staked portfolio of Ether and more. mi withdrawn some of its funds in April 2023. Celsius has almost $300 thousand in staked ETH at the time of writing, according to Dune Analytics.
Celsius legal battles
The embattled crypto lender filed for bankruptcy on July 14, 2022, and is exploring plans for restructuring and recovery amid reports that Celsius is operating in a Ponzi-scheme fashion. Meanwhile, former CEO Alex Mashinsky is in some legal hot water.
In January 2023, Mashinsky was sued by New York Attorney General Letitia James — the judge famous for suing Tether and Bitfinex — for defrauding investors. In February 2023, Mashinsky was sued again by creditors, who claimed that the executives had cashed out before the platform collapsed.
While it’s too early to say what Celsius plans to do with the results of staked ETH both on and off Figment, the Southern District of New York has approved a restructuring plan that allows about 85% of customers who receive 72.5% of their crypto back. from Celsius.