Celsius Network Transfers $1 Billion in ETH to Coinbase and Paxos
The bankrupt cryptocurrency lender, Celsius Network, has recently executed significant transfers of around $1 billion in ether (ETH) to centralized crypto exchanges Coinbase and Paxos. These transfers are likely in preparation for the lender’s upcoming creditor repayment schedule. According to data from the crypto analytics platform Arkham Intelligence, Celsius made a total of 13 transfers, including two test transactions.
Details of the Transfers
In these transfers, Celsius first moved the assets to an address it has been using to interact with the crypto exchanges. After conducting test transactions worth $22.05 each, the firm then transferred 45,000 ETH worth $99.49 million to Coinbase. Subsequently, additional transfers were made to Coinbase, totaling 297,454 ETH worth over $657 million. Paxos received 146,507 ETH valued at approximately $324 million. Overall, Celsius sent crypto assets worth more than $981 million.
Implications for Celsius’ Creditor Repayment
These recent transfers come after Celsius sent $125 million in ETH to other crypto exchanges a couple of weeks ago. The bankrupt lender is expected to begin repayments on or before January 31, 2024. The approval of Celsius’ reorganization plan by the New York Bankruptcy Court and the green light from the United States Securities and Exchange Commission (SEC) paved the way for these developments.
Changes in Reorganization Plan
Following the SEC’s approval, Celsius will now focus on mining and registering shares of Mining NewCo, a Bitcoin mining and staking entity owned by creditors and managed by the Fahrenheit consortium. Previously, Celsius had planned to transition into Mining NewCo itself. The lender’s exit from bankruptcy involves the distribution of $2 billion in BTC and ETH to customers, along with shares of the newly established company.
Hot Take: Celsius Network Transfers $1 Billion in ETH to Coinbase and Paxos
Celsius Network, a bankrupt cryptocurrency lender, has made significant transfers of approximately $1 billion in ether (ETH) to centralized crypto exchanges Coinbase and Paxos. These transfers are likely part of the lender’s preparation for its creditor repayment schedule. The recent approval of Celsius’ reorganization plan and green light from the SEC have set the stage for these transfers. Celsius will now focus on mining and registering shares of Mining NewCo, a Bitcoin mining and staking entity owned by creditors. The lender is expected to begin repayments by January 31, 2024.
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