Celsius Moves Large Ether Amounts Amid Anticipated Crypto Repayments to Creditors
Summary:
Amid expectations of repayment to creditors, defunct crypto lending platform Celsius is observed moving large amounts of Ether (ETH) to centralized exchanges. Numerous substantial Ether transactions were made from the Celsius Network wallet to Paxos and Coinbase Prime. Since November 2023, Celsius has moved a considerable amount of ETH to various exchanges, while still holding a considerable cache. Depending on the account type, repayments to creditors will be made through Coinbase or PayPal. Meanwhile, implications have been made that those who made significant withdrawals before the company's bankruptcy declaration may have to return their funds.
Amid anticipation from creditors that the now obsolete crypto lending company, Celsius, will begin repayment in cryptocurrency in mid-February, there has been noticeable movement of substantial Ether (ETH) quantities to centralized exchanges. On January 26, the Celsius Network wallet made numerous substantial Ether dispatches to deposit wallets intended for Paxos and Coinbase Prime. The maximum single transaction recorded was a hefty 443,961 ETH, equivalent to $984 million upon transfer, moving from Celsius to another wallet under the network's control, in apparent readiness for further movement.
Thereafter, this considerable volume of ETH was broken down into a series of 13 transactions over the next 60 minutes, all bound for Coinbase and Paxos wallets, as per data provided by blockchain analytics firm, Arkham. Spotonchain revealed that most of the 297,454 ETH dispatched to Coinbase was disseminated across 12 newly-created wallets, likely connected to an OTC deal. A mere two days prior, Celsius transferred 575,081 ETH on January 24 via addresses labelled Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor in an internal transaction.
In sum, since November 13, 2023, the Celsius Network moved 757,626 ETH towards FalconX, Coinbase, OKX, and Paxos. The company still retains 62,469 ETH, valued at around $138.8 million with current rates. The specific reasons behind the recent Ether transactions remain uncertain. However, an updated FAQ regarding Celsius asset distribution as of January 12 indicates a small number of corporate accounts will have the ability to accept cryptocurrency via Coinbase. For individual accounts, American creditors' payments will be through PayPal, while international creditors will receive payments through Coinbase.
The "Celsius NewCo Community", a group of creditors on X, expressed expectations for the delivery of liquid cryptocurrency to Earn Creditors beginning in mid-February and lasting for a year.
In related news, a Celsius user known as "TheHawk" claimed to have successfully moved all of their owned ETH from Celsius asserting that the funds were in their custody account, not in the Earn account. Additional transfers of $95.5 million to Coinbase were made by Celsius between January 8 and 12, and $29.7 million was shifted to FalconX, according to Arkham Intelligence. In the earlier part of the month, the insolvent lending company declared shifting assets to maintain satisfactory liquidity poised for any asset distributions. Celsius noted it will un-stake its existing holdings of Ether to offset particular costs incurred during the restructuring process and access ETH to ensure prompt dispersion to creditors.
The company no longer has any ETH awaiting staking withdrawal as confirmed by Nansen. On January 9, officials managing the bankruptcy of Celsius filed an intent to alert creditors about possible requirements for account holders who withdrew more than $100,000 in the 90 days prior to the company's bankruptcy declaration on July 13, 2022 to return the funds by January 31, 2024. However, despite these actions, the price of ETH showed no observable change, remaining steady at $2,225 at the time of writing.
Published At
1/26/2024 7:38:31 AM
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