Celsius Wallet Deposits $30.34 Million Worth of Ethereum (ETH) to Coinbase
A wallet linked to the now-defunct crypto lending platform Celsius has transferred $30.34 million worth of Ethereum (ETH) to Coinbase, as reported by Lookonchain, a crypto tracker.
Additional Deposit to FalconX
Lookonchain also notes that Celsius made another deposit of $5.13 million worth of ETH to the crypto exchange FalconX.
Remaining Ethereum Holdings
Celsius still holds a total of 557,081 Ethereum in its two staking wallets, valued at approximately $1.3 billion.
Celsius’ Bankruptcy and Legal Troubles
In July 2022, Celsius filed for bankruptcy after its native token, CEL, experienced a 99% drop and could not fulfill withdrawal requests. The company’s founder, Alex Mashinsky, was subsequently arrested and charged with fraud in the US. Mashinsky is also facing a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly deceiving customers and offering unregistered securities.
NewCo Plan for Repaying Creditors
Last year, a judge approved Celsius’ plan to create a new mining and staking corporate spinoff called “NewCo” to generate funds for repaying creditors. NewCo will have a balance sheet of $1.25 billion, with $450 million in liquid crypto assets.
Unstaking Process for Ethereum Holdings
Celsius has initiated the unstaking process for its Ethereum holdings, which it has been using to generate income over the past year and a half. The company plans to unstake these ETH holdings to offset certain restructuring costs and ensure timely distributions to creditors.
Hot Take: Celsius Faces Consequences for Mismanagement and Fraud
Celsius’ recent deposit of Ethereum to Coinbase and FalconX highlights the company’s ongoing efforts to manage its assets and repay creditors. However, it cannot be ignored that Celsius faced significant financial challenges due to mismanagement and fraudulent activities. The bankruptcy filing and legal troubles surrounding its founder, Alex Mashinsky, raise concerns about the platform’s credibility and the safety of user funds. Celsius must address these issues transparently and take appropriate measures to regain trust within the crypto community.
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