Table of Contents
- Celsius Moves Huge Amount Of ETH
- Speculations Galore
- Distributions In Mid-February?
Defunct crypto lending platform Celsius has moved a staggering $1 billion worth of ETH to several centralized exchanges, sparking speculation that it was preparing to repay creditors in crypto.
The bankrupt crypto lender moved 443,961 ETH to prominent cryptocurrency exchanges such as Coinbase Prime, Paxos, and FalconX.
Celsius Moves Huge Amount Of ETH
The ETH in question was moved into exchange wallets over 13 transactions made on the 25th of January and the 26th of January. The deposits were made from the Celsius Network wallet to deposit wallets for Paxos and Coinbase Prime. The largest of these transactions was for 443,961 ETH worth $984 million at the time of the transaction. According to data from Spotonchain, most of the 297,454 ETH sent to the Coinbase exchange was distributed among 12 wallets, likely as part of an OTC deal.
Just two days prior, on the 24th of January, Celsius moved 575,081 ETH to addresses labeled as Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor through an internal transaction. Celsius has moved a staggering 757,626 ETH to platforms such as OKX, Coinbase, FalconX, and Paxos since the 13th of November. Celsius also still holds an additional 62,469 ETH, valued at nearly $139 million.
Speculations Galore
While the exact reasons behind the humongous transfer of ETH are unclear, it is speculated that Celsius may be preparing for repayments to creditors. A Celsius asset distribution FAQ states that a limited number of corporate accounts can recover cryptocurrency through Coinbase. It further added that for non-corporate accounts, distributions to creditors in the United States will be made via PayPal. Meanwhile, distributions to creditors based outside the US will be made through Coinbase.
Distributions In Mid-February?
A community of Celsius creditors on X (formerly Twitter), called the Celsius NewCo Community, believes that Celsius would begin the distribution of liquid crypto to creditors by the middle of February, with the distribution window being open for a duration of one year.
“Celsius is aiming for an Effective Date of the 31st of January.️ We expect the distribution of liquid crypto to Earn Creditors to start in mid-February. The distribution window will be open for one year.”
Data from Arkham Intelligence showed that Celsius had transferred $95.5 million to Coinbase and a further $29.7 million to FalconX between the 8th of January and the 12th of January.
Celsius stated it was moving funds to ensure liquidity in preparation for upcoming asset distributions. The bankrupt lender also said it would unstake its existing ETH holdings to help offset costs incurred during the restructuring process and ensure timely distributions to creditors.
Celsius’s bankruptcy administrators had, on the 9th of January, filed an intent to notify its creditors that any account holder who withdrew $100,000 or more in the 90 days prior to the date of the firm’s bankruptcy may be required to return them by the 31st of January, 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
