Celsius Moves $125 Million Worth of ETH to Repay Creditors
Crypto lender Celsius has transferred $125 million worth of ETH to crypto exchanges as part of its effort to repay creditors. This move follows the resumption of fund transfers by FTX and Alameda Research. Between January 8th and 12th, Celsius moved $95.5 million worth of ETH to Coinbase and $29.7 million worth of ETH to FalconX. Despite these transfers, Celsius still holds over 550,000 ETH, valued at around $1.36 billion. This comes after Celsius unstaked 206,300 ETH worth $407 million to prepare for creditor repayment. The funds will cover costs incurred during the restructuring process.
Celsius Demands Repayment from Users
Celsius has proposed a plan to recover funds by demanding users who cashed out over $100,000 in the 90 days leading up to the bankruptcy declaration to resolve their outstanding liability or face litigation. These withdrawals are deemed eligible for pursuit in court. Users affected by this demand must return 27.5% of their withdrawn amount by January 31st, 2024, or face the possibility of clawback. The success of this initiative will determine its influence and its potential adoption by other struggling platforms to recover funds.
Other Firms Make Fund Transfers
In addition to Celsius, bankrupt exchange FTX and its defunct trading arm Alameda Research transferred around $28 million worth of crypto to centralized exchanges. This included ETH, Wrapped Bitcoin, and PENDLE tokens. FTX aims to raise funds to repay its creditors and has reclaimed $7 billion in assets so far, including $3.4 billion in crypto.
Hot Take: Celsius Strives to Repay Creditors while Demanding Repayment from Users
Celsius is making significant moves to repay its creditors by transferring $125 million worth of ETH to crypto exchanges. The company has also demanded repayment from users who withdrew over $100,000 in the months leading up to its bankruptcy declaration. These efforts reflect Celsius’ determination to resolve its financial obligations and potentially set a precedent for recovering funds in the crypto industry. However, the success and influence of these initiatives remain uncertain, and their impact on users and struggling platforms will unfold over time.
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