Beleaguered Crypto Firms Celsius and FTX Shift Millions in Ether to Exchanges Amid Plans for Creditors' Repayment
Summary:
Celsius, a crypto lending company facing challenges, has transferred over $125 million of its Ether (ETH) to crypto exchanges in an effort to start repaying its creditors. Despite this, Celsius braces a considerable ETH stash, with over 550,000 ETH ($1.36 billion) remaining on its books. In another distinct move, bankrupt crypto exchange FTX and Alameda Research have shifted $28 million in crypto to exchanges, adding to the ongoing trend of embattled firms liquidating their digital assets.
Celsius, a crypto lending firm currently facing troubles, has recently moved in excess of $125 million of its Ether (ETH) holdings to cryptocurrency exchanges, signaling its intent to initiate debtor repayments. Over the course of a week starting January 8th, Celsius relocated $95.5 million to Coinbase and an additional $29.7 million to FalconX as per the figures from Arkham Intelligence.
Yet, Celsius continues to retain over 550,000 ETH, valuing an impressive $1.36 billion. On the 5th of January, the firm unstaked a significant 206,300 ETH, equivalent to $407 million, stating its intent to use the funds to cover restructuring expenses and initiate payouts to debtors.
Celsius made known its plan to distribute Bitcoin (BTC) and ETH to its debtors through its recovery strategy, though concrete timelines have not been disclosed yet. Debtors have been in a waiting period of over a year and a half to receive payments that have been delayed ever since the firm filed for bankruptcy in July 2022.
Interestingly, Celsius isn't the solitary firm in distress transferring its crypto assets to exchanges. FTX, a bankrupted crypto marketplace, and its defunct trading arm Alameda Research, transferred $28 million in crypto to exchanges on January 14th, according to SpotOnChain's data.
The transactions of FTX and Alameda Research involved transfers of $18.7 million in Wrapped Bitcoin, $8 million in Ether, and $1 million in Pendle (PENDLE) to Coinbase and Binance. Following its bankruptcy in November last year, FTX has been seeking ways to generate funds for debtor repayment and has effectively reclaimed around $7 billion in assets, $3.4 billion of which is in cryptocurrency. Market response to FTX's debtor claims has been positive, and there is an estimate that debtor recompensation could kick-start within the year.
Published At
1/15/2024 6:42:57 AM
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