Bankrupt Celsius stake $57M worth of Ethereum: Arkham

On-chain sleuth Lookonchain reported that the bankrupt lender Celsius had withdrawn over 6000 ETH in April.

Bankrupt crypto lender Celsius has resumed staking Ethereum (ETH), according to data shared by Arkham Intelligence.

Arkham reported that the bankrupt lender staked 30,800 ETH — $56.9 million — via stak- ing solutions provider Figment during the past week. A research analyst at 21Co, Tom Wan, corroborated the Arkham report.

According to Wan, Celsius deposited over 40,000 Ethereum through Figment between May 10 and May 12.

The reason behind this deposit is currently unknown, considering Celsius withdrew part the rules of traditional finance to that of the crypto industry.

As stated by Peirce to The Financial Times, “[The UK’s] approach is one that can serve as a model for us, MiCA (Markets in Crypto Assets Regulation) can serve as a model for us. I think we’re shooting ourselves in the foot by not having a regulatory regime in the US.” of its staked ETH in April. At the time, industry players interpreted this as a move that the bankrupt firm was consolidating its assets.

MiCA is the EU’s set of rules that governs the issuance and provision of services that involve crypto assets and stablecoins. According to The Financial Times, MiCA is slated to come into force next year.

Celsius remains one of the biggest firms with a staked ETH portfolio. According to the Arkham Intelligence dashboard, the lender holds 410,378 staked ETH worth $749.37 million.

Meanwhile, Celsius transactions are not altogether surprising given that several entities that withdrew their staked ETH have begun re-staking them. Liquid staking derivatives protocol Lido has led the charts in staked ETH withdrawals and deposits over the past few weeks, according to Nansen’s dashboard.