Celsius, currently facing some financial challenges, transferred 22,962.8 WBTC into bitcoin on Feb. 28. This action, approved by its creditor committee, was reported in a Chapter 11 bankruptcy filing on March 3. No explanation was supplied for why this swap took place. WBTC, also known as Wrapped Bitcoin, is an ERC-2o token; this token can’t be operated within the Ethereum blockchain.
Celsius, one of several crypto lenders to be affected by the bear market, initiated Chapter 11 bankruptcy proceedings in July, revealing a deficit of $1.2 billion. Since then, the company has been undergoing a restructuring process to find ways of addressing its creditors’ obligations.
Celsius just burned 50% of their WBTC coins. Total as of January was 23,000 on the books. I get the feeling they may sell the BTC to boost revenue for Feb after the forced acknowledgement of their losses last month for 2022 losses. https://t.co/MZH9CfPObJ
— Keith (@ChazzonKe) February 28, 2023
Some Recent Allegations on Celsius
The court-appointed examiner’s report in January revealed multiple operational deficiencies, deceptive public declarations, market manipulation, and Ponzi-style recycling of client assets. This is in violation of professional standards and regulations. The report further revealed some doubts of its employees whether they’re in compliance with applicable legislation, wherein Harumi Urata-Thompson, their ex-Chief Financial Officer, commented that there might be a case for illegal activities.
This week, the Celsius creditor committee supported plans for a sale to NovaWulf Digital Management, a 2021 investment firm founded by former Wall Street professionals. These plans were already put forward by the committee last month.
