Bankrupt Crypto Lender Moves $75M of Ether to Staking Service

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The maneuver represents one of the largest transfers of funds for Celsius Network since it filed for bankruptcy protection in July.

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.

Figment is a non-custodial service, meaning that Celsius still holds the keys to deposited digital assets, a company representative said in an email.


Bankrupt crypto lending platform Celsius transferred 428,000 staked ether (stETH) worth $780 million on Monday, according to Etherscan data.

The transfer corresponds with the introduction of a withdrawal feature by Lido Finance, the stETH provider, for the first time.

It’s unclear whether the transfer is related to a possible attempt by Celsius to regain previously inaccessible funds during its bankruptcy proceedings.

Celsius went bankrupt in 2022 after being unable to fulfill customer withdrawals, and have been in working through bankruptcy ever since.

Part of the platform’s business model was staking their customers’ ETH with Lido in return for stETH, which could then be used as collateral on other platforms to attempt to generate yield. After suffering financial difficulties, Celsius was unable to convert the stETH back into ETH.

Celsius and its former CEO Alex Mashinsky have been the subject of scrutiny since the firm’s collapse, including from regulators.

New York State Attorney General (NYAG) Letitia James filed a formal complaint against Mashinsky in January, months after Celsius went bankrupt.

James alleges that Mashinsky made misleading statements to investors about the details of his company and failed to properly register Celsius as required by state law.

Says the AG,

“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. The law is clear that making false and unsubstantiated promises and misleading investors is illegal.”

Mashinsky recently responded to the allegations, saying that James’ charges were based on misinformation.

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