Crypto

Celsius Transfers $75M of Ethereum to Staking Service Figment

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Key Takeaways

Accounts tied to Celsius moved 40,928 ETH into staking contracts on platform Figment from May 10 to May 12.
This 41,000 ETH staked adds to the $300,000 in ETH currently staked by 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.

The transfer was spread across 14 transactions between May 10 and May 12 and put into staking contracts owned by Figment, according to Etherscan. It is considered the largest movement 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:

Wan noted that this was Celsius’ first movement to Figment after one year, stating that Celsius could have used its own staking pool for the 40 thousand Ether.

Staking is a process of locking up crypto, such as Ether, for a set amount of time in order to earn rewards for validating transactions and creating blocks on the network.

While Figment offers around 5.6% of annualized staking rewards, according to its website, Celsius has a staked Ether portfolio and even withdrew 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 has been exploring plans for restructuring and recovery amid reports that Celsius operated in a Ponzi-scheme manner. Meanwhile, former CEO Alex Mashinsky has been in some legal hot water.

In January 2023, Mashinsky was sued by New York Attorney General Letitia James — the judge notable for suing Tether and Bitfinex — for defrauding investors. In February 2023, Mashinsky was again sued by creditors, who claimed that the executives cashed out before the platform collapsed.

While it is too soon to tell what Celsius plans to do with the results of the staked ETH both on and off Figment, the Southern District of New York approved a restructuring plan that allows around 85% of customers to receive 72.5% of their crypto back from the Celsius.

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