The bankruptcy proceedings Celsius Network transferred 428,015 stETH (~$776.5 million) amid the rollout by Lido Finance liquid staking platform’s second version of the protocol, as noted by The Block.
The Lido upgrade allows withdrawals of locked Ethereum, burning stETH in a 1:1 ratio. The process is expected to take between 24 hours and five days, according to the statement.
The transfer may be part of the lending firm’s strategy to unlock ETH that had previously been inaccessible, journalists suggested.
Subsequently, Celsius reportedly sent a test 0.1 stETH as a withdrawal request.
In June 2022 Celsius paused withdrawals, exchanges and transfers between accounts “due to extreme market conditions.” At that time, the largest pool on Curve DEX, which allows converting stETH to ETH, faced large sell-offs of the Lido staking token from Amber, Alameda Research and Three Arrows Capital. Liquidity problems led to the widening of the stETH discount.
In July, after filing for bankruptcy, Celsius reported a a $1.2 billion hole in its balance sheet. In August it emerged that the company’s liabilities exceeded its assets by $2.85 billion.
Earlier in May 2023, Celsius transferred $74.3 million in Ethereum to the Figment staking service.