• Celsius Network transferred 40,928 ETH to a staking service called Figment last week.
• This represents one of the largest transfers of funds for Celsius since it filed for bankruptcy protection in July.
• The transfer is part of a restructuring process that allows Celsius to earn rewards on its digital asset holdings during the reorganization.
Celsius Network Transfers $75M of Ether
Beleaguered cryptocurrency lender Celsius Network staked some $75 million of ether (ETH) last week via Figment, an institutional-grade staking service, blockchain data shows. According to data by crypto intelligence firm Arkham Intelligence, Celsius – via fourteen transactions between May 10 and May 12 – transferred some 40,928 ETH to an aggregation smart contract labeled as Figment ETH2 Beacon Depositor 1 by blockchain explorer Etherscan. It then forwarded to Ethereum’s proof-of-stake Beacon chain’s deposit contract.
Celsius Seeks Restructuring Through Staking Service
Figment is a non-custodial service, meaning that Celsius still holds the keys to deposited digital assets, a company representative said in an email. The manuever represents one of the largest movements of funds for the crypto lender since it filed for Chapter 11 bankruptcy protection in July. As part of the restructuring process, the bankruptcy court is holding an auction to sell the firm and its assets to interested investors including digital asset investment firm NovaWulf and private equity giant Apollo Global Management.
Advantages Of Staking With Figment
Depositing to a staking service allows Celsius to earn rewards on its digital asset holdings during the restructuring efforts. According to Figment’s website, Ethereum staking offers an average of 5.6% annualized staking reward.
Celsius Also Operates Largest ETH Staking Pool
Celsius move comes as a surprise because it also operates one of the largest ETH staking pools with some $290 million of assets under management.
By transferring funds into this non-custodial service, Celsius has opened up more opportunities for earning rewards while they work through their restructuring process with creditors and investors alike.