Celsius, the troubled crypto lender, recently executed a substantial transfer of over $125 million in Ether (ETH) to various crypto exchanges.
Key Takeaways
- Celsius, the embattled crypto lender, transferred over $125 million in ETH to various exchanges, aiming to address financial challenges and initiate creditor repayments.
- During January 8-12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX, following its decision to unstake 206,300 ETH valued at $518 million on January 5.
- Despite these transfers, Celsius still holds 550,000 ETH worth $1.38 billion, with intentions to distribute BTC and ETH to creditors as part of its recovery plan.
- FTX and Alameda Research, facing financial issues, executed transfers totaling $28 million, involving Bitcoin, Ether, and Pendle to Coinbase and Binance.
Celsius Initiates $125M ETH Transfer Amid Financial Challenges
Celsius, a crypto lending platform facing financial difficulties, recently made a significant move by transferring over $125 million worth of its Ether (ETH) holdings to various cryptocurrency exchanges.
This strategic step, conducted between January 8 and 12, involved $95.5 million sent to Coinbase and $29.7 million to FalconX, according to Arkham Intelligence.
Celsius’s Commitment to Creditor Repayment
Celsius has expressed its commitment to distributing BTC and ETH to creditors as part of its recovery plan. However, the commencement date for creditor fund distribution remains undisclosed, leaving creditors awaiting repayment for over 18 months since Celsius initially declared bankruptcy in July 2022.
Positive Sentiment for FTX Creditor Claims
The market sentiment towards FTX creditor claims has been positive, with some reaching as high as $0.50 on the dollar in October of the previous year. This suggests a reasonable expectation of full reimbursement for creditors. While there is no exact date for repayments, the current plan estimates that FTX customers can expect repayments to commence sometime this year.
Read More: Celsius Network’s $450M Relaunch May Redefine Crypto Comebacks
To Conclude
This move is part of Celsius’s ongoing efforts to address financial challenges, restructure, and initiate repayments to creditors. Despite these transfers, Celsius still holds an impressive 550,000 ETH valued at $1.38 billion.
Additionally, FTX and Alameda Research, facing their own troubles, executed transfers totaling $28 million, involving Bitcoin, Ether, and Pendle to Coinbase and Binance.
