Celsius, the struggling crypto lender, took an unusual step. It moved more than $125 million of its Ether to crypto exchanges in the last week as part of a plan to start paying back its creditors.
Between Jan 8 and 12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX. This information comes from Arkham Intelligence.
Notwithstanding these transfers, Celsius still retains a significant holding of more than 550,000 ETH, valued at an impressive $1.36 billion at the time of this report.
On Jan 5 earlier, Celsius made a big choice. It unstaked 206,300 ETH, worth $407 million at the time. However, The lender announced that it would use this freed-up Ether to handle the costs of reshaping its business and to get ready for paying back creditors.
However, Celsius says it will give Bitcoin and ETH to its creditors in its comeback plan. But they haven’t given a confirmed date to start this process.
Celsius’s creditors have been worrying for over a year and a half, waiting for their money. The problem started when Celsius went broke in July 2022.
Celsius Faces Company In Crypto Asset Relocation
Moreover, Celsius was not the sole troubled company relocating cryptocurrency assets to exchanges in recent times.
On Jan 14, the bankrupt crypto exchange FTX and its inactive trading arm, Alameda Research, executed their transactions, transferring $28 million in cryptocurrency to exchanges, as reported by data from the blockchain analytics platform Spot On Chain.
Moving funds to Coinbase and Binance, $18.7 million of Wrapped Bitcoin, $8 million in Ether, and Pendle (PENDLE) worth $1 million was accomplished.
After FTX and Alameda Research declared bankruptcy in Nov 2022, FTX has diligently sought funds to satisfy creditor obligations. With a successful recovery of about $7 billion in assets, including $3.4 billion in cryptocurrency, the FTX administration has done quite well.
FTX creditor claim values have seen a positive shift in the market, hitting a high of $0.50 per dollar in Oct 2023. This shows a promising chance of creditors being fully reimbursed. The exact timeline for FTX customer reimbursement isn’t set, but the current plan hints at starting paybacks sometime in 2024.
Related Reading | Virtual Asset Mixers Under Scrutiny: South Korea Weighs Regulatory Measures
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
Comments (No)