Lookonchain Identifies Celsius Wallet Transfers to Crypto Exchanges
On-chain analytics blockchain platform Lookonchain has discovered a Celsius wallet that made transfers to crypto exchanges. According to Lookonchain, the wallet deposited 13,000 Ether tokens ($30.34 million) to Coinbase and 2,200 Ethereum tokens ($5.13 million) to FalconX within a 10-hour timeframe, indicating increased activity from the defunct decentralized finance (DeFi) lending network.
Other Celsius-Staking Wallets Hold $1.3B Worth of Ether Tokens
In addition to the above transfers, two other Celsius-staking crypto wallets collectively hold 557,081 Ether tokens, amounting to $1.3 billion.
Celsius Network Deposits $621M Worth of Ether Tokens
Prior to these recent deposits, the Celsius Wallet had already transferred 18,000 Ether tokens ($40 million) to Coinbase 12 hours earlier. Since November 13, 2023, Celsius has deposited a total of 280,670 Ether tokens ($621 million) across Coinbase, OKX, and FalconX centralized trading platforms.
Celsius Network’s Payout Strategy for Bankruptcy Compensation
Celsius Network’s deposits are part of its payout strategy to compensate affected investors following its bankruptcy. The DeFi protocol announced that it will be unstaking its Ether token holdings to facilitate timely distributions of digital assets to creditors and offset some of the costs incurred during its restructuring process.
Celsius Network Faces Challenges and Legal Issues
Celsius Network faced significant challenges leading to its forced bankruptcy filing. The value of its ERC-20 CEL tokens also suffered a 99% dip due to the platform’s inability to fulfill customer withdrawal orders. Furthermore, the project’s founder and CEO, Alex Mashinsky, is facing charges from the US Securities and Exchange Commission (SEC) for fraud and selling unregistered securities. The SEC is also taking legal action against Celsius Network and its founder for alleged market manipulation of the CEL token.
BTC Mining Company Established to Aid in Bankruptcy Process
To facilitate the ongoing restructuring, a court ruling has authorized the establishment of a Bitcoin mining facility named NewCo. This BTC mining company will be capitalized with $225 million.
The Future of Celsius Network
While a substantial portion of deposits is being used to reimburse investors, the challenges for Celsius Network continue. The establishment of a Bitcoin mining company aims to aid in the bankruptcy process and provide a path out of Chapter 11 Bankruptcy.
Hot Take: What’s Happening with Celsius Wallet Transfers?
Celsius Network’s recent transfers of millions of dollars’ worth of Ether tokens to Coinbase and FalconX have raised questions about the platform’s activities during its bankruptcy process. These transfers are part of Celsius’ payout strategy to compensate affected investors and offset restructuring costs. However, the platform’s challenges, legal issues, and involvement in market manipulation allegations have cast doubt on its future. The establishment of a Bitcoin mining company as part of the bankruptcy process aims to provide a way forward for Celsius Network. It remains to be seen how these developments will impact the platform and its stakeholders.
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