Bankrupt crypto lender Celsius transfers Ethereum to exchanges, hinting at possible creditor repayments.
In recent developments within the cryptocurrency sector, the bankrupt crypto lending platform Celsius has made a significant move by transferring a substantial amount of Ethereum (ETH) to centralized exchanges (CEXs). This action has sparked widespread speculation that the company may be gearing up to begin repaying its creditors.
Celsius has been observed moving a staggering 443,961 ETH, which is valued at approximately $984 million, to various centralized exchanges. This is part of a larger series of transactions where the company has shifted a total of 757,626 ETH to different platforms since November 13, 2023. Despite these large transfers, Celsius still retains a balance of 62,469 ETH in its possession.
The transfer of such a large sum of Ethereum has led to the belief that Celsius is positioning itself to start repaying its creditors, potentially as soon as mid-February. The company's repayment strategy seems to involve utilizing major cryptocurrency platforms such as Coinbase and PayPal to facilitate the distribution of assets to its creditors. Specifically, corporate accounts are expected to receive cryptocurrency through Coinbase, while non-corporate accounts in the United States may use PayPal, and international creditors will likely use Coinbase for their repayments.
The movement of funds has not gone unnoticed, with the crypto community closely monitoring the situation. The transfers took place on January 25 and 26, following an internal movement of 575,081 ETH within Celsius's wallets on January 24. These transactions were executed across 13 separate transfers and involved major exchanges like Coinbase Prime, Paxos, and FalconX.
While Celsius has not officially confirmed the purpose of these transfers, the timing and scale suggest that they are preparing for a structured repayment process. This step could provide some relief to the creditors who have been waiting for a resolution since the platform's financial troubles became public.
As the cryptocurrency community awaits further announcements, the actions taken by Celsius are a clear indication that the platform is taking steps towards resolving its debts. Creditors and stakeholders should stay informed about any official communication from Celsius regarding the repayment process and the distribution of assets. The situation remains dynamic, and the coming weeks will be crucial in understanding the full impact of these transfers on the platform's future and the broader cryptocurrency market.