• Crypto Lender Celsius Network transferred $75M of Ether to a staking service Figment.
• The move was one of the largest transfers since the company filed for bankruptcy protection in July.
• Depositing to a staking service allows Celsius to earn rewards on its digital asset holdings during restructuring efforts.
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.
Staked Funds During Restructuring Efforts
The maneuver represents one of the largest transfers of funds for the crypto lender since it filed for Chapter 11 bankruptcy protection in July. The move comes as a surprise because it also operates one of the largest ETH staking pools with some $290 million of assets under management. 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.
Background Information On Celsius Network
Celsius was one of the crypto firms that became insolvent after the sudden implosion of blockchain project Terra and the subsequent meltdown of crypto markets a year ago, forcing the company to freeze user withdrawals. As part of the restructuring process, the bankruptcy court is holding an auction to sell off the firm and its assets to interested investors including digital asset investment firm NovaWulf and private equity giant Apollo Global Management.
Non-Custodial Staking Service
Figment is a non-custodial service, meaning that Celsius still holds control over deposited digital assets according to a company representative who emailed information about this matter .
Potential Rewards For Staked Funds
Depositing funds into a staking service enables Celsius to generate potential rewards from their digital asset holdings during their restructuring efforts . According To Figment’s website , Ethereum Stakers can anticipate around 5 . 6 % return annually .