Celsius wallets, one of the crypto money platforms that went bankrupt in 2022, are experiencing activity.
Celsius transferred 428,015 stETH (Lido staked Ether) worth $722 million to the Ethereum wallet on May 15.
While the exact reason for this transfer is unknown, speculations have indicated that Celsius's transfer may be part of a strategy to get back the ETH that it was unable to access during the bankruptcy case.
It was also stated that this transaction coincided with the launch of the direct withdrawal feature for the first time by stETH provider Lido Finance.
Celsius wanted to convert stETHs to ETH after its bankruptcy, but was unable to do so due to lack of liquidity. It seems likely that the company will convert sETHs to ETH and return them to their creditors under the current repayment schedule.
In this regard, although Celsius has not yet requested all of its stETH from Lido, it did execute a 0.1 stETH withdrawal from Lido to test whether the withdrawal was successful.
Lido, which received a 10 percent staking commission, announced on May 15 that it allowed withdrawal to V2 with a protocol update.
“Lido V2 offers two main components, the most appealing aspect to the user being Ethereum withdrawals. This allows Lido and Ethereum stakers to withdraw ETH directly via the protocol.” said.
Lido Finance currently holds 29% of all staked Ethereum with 6.27 million ETH worth approximately $11.3 billion.
*Not investment advice.