Celsius Moves $1 Billion Worth of ETH, Signaling Potential Repayment to Creditors
Amidst bankruptcy proceedings, defunct crypto lending platform Celsius has transferred a massive $1 billion worth of ETH to several centralized exchanges. This move has sparked speculation that Celsius may be preparing to repay its creditors in cryptocurrency. The ETH was moved over 13 transactions to exchanges like Coinbase Prime, Paxos, and FalconX. The largest transaction involved 443,961 ETH worth $984 million at the time. Data indicates that most of the ETH sent to Coinbase was likely part of an OTC deal, distributed among 12 wallets.
Speculations Surrounding the Move
The exact reasons for the transfer are unclear, but it is believed that Celsius may be getting ready for repayments to its creditors. The company’s asset distribution FAQ states that limited corporate accounts can recover cryptocurrency through Coinbase, while non-corporate accounts in the US will receive distributions via PayPal. Distributions to creditors outside the US will be made through Coinbase. This has led to speculations that the recent transfer of ETH is a step towards those repayments.
Potential Distribution Timeline
The Celsius NewCo Community, a group of creditors, predicts that the distribution of liquid crypto to creditors will begin in mid-February. According to a statement, the distribution window will remain open for one year. Data shows that Celsius previously transferred funds to platforms like Coinbase and FalconX in early January. Celsius has explained that the recent movement of funds is aimed at ensuring liquidity for upcoming asset distributions and offsetting costs incurred during the restructuring process.
Closing Thought: A Significant Development for Celsius’s Creditors
Celsius’s decision to transfer a substantial amount of ETH to centralized exchanges marks a significant development for its creditors. If speculations about repayment preparations are accurate, it could provide some relief to those who have incurred losses due to the platform’s bankruptcy. The community of Celsius creditors eagerly awaits the distribution of liquid crypto, as it would offer an opportunity to recover their investments and move forward.
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