Celsius, a once-prominent crypto lending platform now facing bankruptcy, has made a significant move by transferring a massive $1 billion worth of Ethereum (ETH) to several centralized exchanges (CEXs). This action raises speculations about the company's plans to start repaying its creditors.
On January 26, 2024, Celsius initiated several large transactions of Ether from its network wallet to deposit wallets for Paxos and Coinbase Prime. The largest transaction involved the transfer of 443,961 ETH, valued at approximately $984 million at the time of the transaction. This move was part of a total of 13 transactions over the subsequent hour, moving this huge tranche of ETH to Coinbase and Paxos wallets, as reported by blockchain intelligence firm Arkham.
Spotonchain reported that most of the 297,454 ETH sent to Coinbase was distributed to 12 new wallets, possibly as part of an over-the-counter (OTC) deal. This development comes just two days after Celsius moved 575,081 ETH in an internal transaction, using addresses labeled as Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor.
Since November 13, 2023, Celsius Network has moved a total of 757,626 ETH to FalconX, Coinbase, OKX, and Paxos. However, Celsius still retains 62,469 ETH in its holdings, valued at $138.8 million at current prices.
The reasons behind these recent Ether transactions remain unclear. However, a Celsius asset distribution FAQ updated on January 12 suggests that a limited number of corporate accounts will be able to receive cryptocurrency through Coinbase. For non-corporate accounts, distributions to U.S. creditors will be made via PayPal, and those outside the U.S. will be handled by Coinbase.
A community of Celsius creditors, named “Celsius NewCo Community,” expects the distribution of liquid crypto to Earn Creditors to start in mid-February, with the distribution window remaining open for one year. Meanwhile, some Celsius users have reported successful withdrawals of their ETH holdings from the platform.
As the cryptocurrency community watches these developments, the exact implications of Celsius's Ethereum transfers remain a subject of speculation, potentially signaling a move to align resources for impending creditor repayments.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
