Embattled Celsius Transfers Over $125 Million in Ethereum to Crypto Exchanges
Crypto lender Celsius has recently moved more than $125 million worth of Ethereum to various cryptocurrency exchanges, indicating its intention to begin repaying its creditors. According to data from Arkham Intelligence, between January 8 and 12, Celsius transferred $95.5 million worth of Ethereum to Coinbase and $29.7 million to FalconX.
Despite these transfers, Celsius still holds significant assets, including over 580,000 ETH valued at approximately $1.47 billion and 9,799 BTC worth around $417.67 million. The lender previously unstaked 206,300 ETH, valued at $470 million, for expenses related to restructuring and creditor repayment preparation.
Market observers have expressed mixed reactions to the move, with some concerned about the potential impact on Ethereum’s market value while others see it as a positive step for ETH’s long-term prospects.
Creditors Awaiting Repayment for Over 18 Months
Celsius Network declared bankruptcy in July 2022 due to a liquidity crisis during a broader cryptocurrency market downturn. Since then, the lender has been working towards a settlement plan that allows qualified users to withdraw 72.5% of their crypto holdings until February 28.
The repayment plan involves distributing Bitcoin (BTC) and Ethereum (ETH) to creditors, although no specific date has been disclosed for these distributions. Over 58,300 users have a combined total of $210 million in assets classified as “custody assets,” according to court documents from September.
FTX and Alameda Research Transfer Funds Amidst Bankruptcy Settlement
FTX and Alameda Research, companies associated with Sam Bankman-Fried’s now-defunct crypto empire, have also been transferring funds to centralized exchanges. Last week, these entities moved digital assets worth $28.2 million.
FTX and Alameda still hold around $1.2 billion in EVM assets, and the recent asset movements are speculated to be preparatory steps for compensating affected customers.
$400 Million Token Unlock Pending
Crypto analytics platform CryptoRank has highlighted that seven crypto projects are set to unlock a total of $407.7 million worth of digital assets soon. BitDAO leads the list with the impending release of 172.98 million tokens valued at $147.74 million.
Other significant tokens to be unlocked include SEI ($88.09 million), UNI ($55.54 million), ACE ($38.53 million), LDO ($28.48 million), AXS ($27.15 million), and APE ($22.48 million).
The upcoming token release is expected to have further implications for the crypto market in the following week.
Hot Take: The Implications of Celsius’ Repayment Plan
Celsius’ recent transfers of Ethereum to cryptocurrency exchanges indicate its intent to begin repaying its creditors after a long wait of over 18 months. While some market observers express concerns about the potential impact on Ethereum’s market value, others see it as a positive step for the cryptocurrency’s long-term prospects, especially considering Celsius’ ongoing restructuring efforts.
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