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Celsius takes charge: swiftly transfers Ethereum Staking tokens away from Lido amid withdrawal opportunities

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TL;DR

 

  • Celsius is transferring its Ethereum staking tokens away from Lido, potentially preparing for withdrawals.
  • Simon Dixon suggests Celsius may engage in direct staking and use tokens as collateral for loans.
  • U.S. Trustee pursues Willis Towers Watson for alleged failure to meet requirements in Celsius case.

In a swift move, embattled crypto lender Celsius is actively transferring its Ethereum staking tokens away from Lido, a liquid staking platform that recently enabled withdrawals.

On May 15, an intriguing transaction unfolded as the Crypto lender platform actively received a staggering 428k stETH, transferring it to the Lido staking wallet.

This remarkable amount, valued at approximately $781 million during the transfer, has sparked speculation among some, hinting at a potential preparation for withdrawal.

Simon Dixon, a notable figure in the Bitcoin industry and a creditor of Celsius, has indicated that Celsius may be preparing to engage in direct staking without the involvement of intermediaries such as Lido. In addition, Dixon suggests that Celsius could utilize its tokens as collateral for loans as part of their restructuring initiatives.

His statement implies that Celsius is exploring these strategic moves to enhance its operations and expand its services. By considering direct staking and leveraging its tokens, Celsius aims to optimize its platform and navigate its restructuring plans effectively.

Furthermore, the U.S. Trustee is actively pursuing Willis Towers Watson for failing to be appropriately retained by Celsius. They should have declared their lack of bias, conducted conflict checks, or submitted the detailed timesheets that other retained professionals have included with their invoices.

The U.S. Trustee suspects they have received at least $375k and is seeking a court order to compel them to disclose all compensation received and relinquish it entirely.

Earlier, it was reported that Alex Mashinsky, the founder of Celsius, filed a lawsuit seeking the dismissal of accusations made by Letitia James, the New York Attorney General. Letitia James has accused the Celsius platform of defrauding investors out of hundreds of millions of dollars by operating as an unregistered securities and commodities broker-dealer.

Last week, as blockchain intelligence firm Arkham Intelligence highlighted, Celsius transferred 40,928 ETH to a smart contract known as “Figment ETH2 Beacon Depositor 1”. On May 12, this amount was subsequently moved to the Ethereum Beacon Chain deposit contract, as reported by Etherscan.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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