Key Points:

  • Crypto lender Celsius moves $781M in stETH to Lido staked Ethereum wallet.

  • The transfer was identified on May 15, and some believe it’s in preparation for withdrawal.

  • Celsius could be lining up for staking directly without Lido in the middle or it could also be loan collateral for Celsius restructuring plans.

Celsius has been making moves to shift its Ethereum staking tokens from liquid staking platform Lido. On May 15, a transaction was identified on Celsius wallets for 428,015 stETH (Lido staked Ether) to the Lido staked Ethereum wallet.

The whopping stash was worth $781 million at the time of transfer. This has led some to believe that  LLC is preparing for withdrawal. However, on-chain data points to Celsius performing a test withdrawal of only 0.1 stETH a few hours later.

According to Bitcoin pioneer and  LLC creditor Simon Dixon,  LLC could be “lining up for staking directly without Lido in the middle.” It could also be loan collateral for  LLC restructuring plans, he added.

428k #Celsius $stETH on the move – likely lining up for staking directly without #LIDO in the middle. That’s the loan collateral proposed for NewCo. Should get an update during court hearing this week – 17th May – No court approval needed for this it seems https://t.co/pwT4fR1Qjt https://t.co/4tdSsMegA8

— Simon Dixon (@SimonDixonTwitt) May 15, 2023

Furthermore, blockchain intelligence firm Arkham Intelligence highlighted that  LLC transferred 40,928 ETH last week to a smart contract called “Figment ETH2 Beacon Depositor 1”. This was then moved to the Ethereum Beacon Chain deposit contract on May 12.

Lido, which takes a 10% staking commission, enabled withdrawals on May 15 with a protocol upgrade to V2. As Lido currently accounts for 29% of all staked Ether, this is a significant development. Currently, there is 54,046 ETH currently in the withdrawal queue, and this doesn’t include the Celsius stash yet.

Celsius is taking proactive measures to ensure the safe transfer of its Ethereum staking tokens. While there are different theories as to why  LLC is moving away from Lido, it is clear that the company is focused on ensuring the safety and security of its assets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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