Celsius Initiates Repayments by Transferring $125M ETH
Embattled crypto lender Celsius has transferred over $125 million worth of Ether to various cryptocurrency exchanges as part of its plan to initiate repayments to its creditors. According to data sourced from Arkham Intelligence, $95.5 million of Ethereum was shifted to Coinbase, while $29.7 million found its way to FalconX between January 8 and January 12. Despite these transfers, Celsius still holds over 550,000 ETH on its balance sheet, equivalent to $1.36 billion.
FTX and Alameda Research Start Crypto Transfers
Celsius is not the only distressed cryptocurrency firm making significant moves with its digital asset holdings. On January 14, bankrupt crypto exchange FTX and its defunct trading arm, Alameda Research, executed their own transfers by sending $28 million worth of cryptocurrency to various exchanges. The breakdown of these transfers included Wrapped Bitcoin, Ethereum, and Pendle tokens. These moves are part of their efforts to secure funds for creditor repayment.
Celsius Shifts Focus to Crypto Mining
Last month, Celsius was granted permission to proceed with a second alternative approved by its creditors. This involves the creation of a public company dedicated solely to Bitcoin mining called MiningCo. Creditors will receive a portion of their recovery through shares in the mining company. Additionally, this plan unlocks $225 million in crypto assets that were initially intended for new ventures but were rejected by the SEC. The newly formed entity will be operated by Hut 8 under a four-year mining management contract.
Hot Take: Repayments on the Horizon for Celsius and FTX
Celsius and FTX are taking significant steps towards repaying their creditors. Celsius’ transfer of $125 million worth of ETH to exchanges marks the initiation of its repayment plan. Despite the transfers, Celsius still holds a substantial amount of ETH on its balance sheet. On the other hand, FTX and Alameda Research executed transfers totaling $28 million to secure funds for creditor repayment. With these moves, both companies are making progress towards fulfilling their obligations to creditors, although specific repayment dates have not been announced. The crypto community will be closely watching these developments as they unfold.
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