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Amidst Ongoing Bankruptcy, Celsius Withdraws ETH Stake

Written by: Qadir AK

June 28, 2022

Despite the advice of experts and attorneys, Celsius’ management intends to postpone filing for Chapter 11 bankruptcy. Instead, consumers are invited to demonstrate appreciation by using “HODL Mode” on their accounts, which effectively blocks outbound transfers.

Conversely, Celsius has once again withdrawn its Ethereum (ETH) holdings in Bancor’s liquidity pool to settle debts and maintain weekly payouts.

Celsius Reduces ETH Stake In Bancor

On June 28, PeckShieldAlert revealed that a suspicious Celsius account withdrew 12,880 Ethereum (ETH) for $1,190.73 and obtained approximately 7,183 ETH from a Bancor liquidity pool. Following turning off the Transitory Loss Safeguard, Celsius began reducing ETH stakes in Bancor. Last Thursday, the firm withdrew around 2000 ETH from the liquidity pool and received approximately 1150 ETH.

Furthermore, Celsius wiped off most of its debts due on June 27. In addition, after suspending withdrawals, swaps, and transfers across accounts at the start of this month, the firm has continued its weekly incentives.

Likewise, consultants recommend that the company declare bankruptcy, while CEO Alex Mashinsky and other executives intend to start with restricted transactions. Celsius argues that most of its retail customers might desire that the company escape bankruptcy since it is unpleasant and time-consuming.

Celsius has requested its consumers to identify “HODL Mode,” which allows attorneys and marketers to keep faith in support of the community and the feeling of security in consumers. Allowing the feature does not influence individuals currently barred from removing or exchanging cash. Consumers must wait 24 hours when the corporation begins withdrawals before using their accounts.

The community is hunting for yet another CEL token’s market correction to defend their holdings. The price of CEL is now $0.7508, down 7% in the previous 24 hours.

Celsius CEO did not flee

On June 27, crypto trader Mike Alfred tweeted that aviation authorities halted Mashinsky on his way to Israel. 

However, according to a Celsius notification, All Celsius workers, particularly the CEO, are keen on stabilizing liquidity and performance. Therefore, any allegations that the Celsius CEO sought to flee the country are untrue.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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