Celsius Network Transfers $30 Million Worth Of Crypto
The bankrupt crypto lending firm Celsius Network has made a significant transfer of its crypto holdings, totaling around $30 million. This includes Ethereum (ETH), stablecoins, and almost all of the CEL tokens in existence. The transfer was made from Celsius’ Fireblocks crypto wallet to a new wallet.
According to on-chain data, the specific tokens transferred include 703.5 ETH, over 653 million CEL, 7 million USDC, and various stablecoins like TrueAUD, TrueCAD, TrueHKD, and TrueGBP. It’s worth noting that the CEL tokens transferred represent nearly the entire supply of CEL tokens.
It remains unclear why Celsius made these transactions. Some speculate that the company may be trying to offload these tokens, although their value is currently low. The CEL token has experienced a significant drop in value, down over 98% from its all-time high.
Plans for Shutting Down App and Repaying Customers
Celsius Network recently announced plans to shut down its app in November. The company intends to repay its customers what they are owed and launch a new creditor-owned company called “NewCo.”
“Sam Bankman Machinsky”
A user on X (formerly Twitter) referred to the recent events surrounding Celsius Network as “Sam Bankman Machinsky.” This likely refers to the similarities between Celsius’ founder, Alex Mashinsky, and Sam Bankman-Fried, the founder of defunct crypto exchange FTX.
Both Mashinsky and Bankman-Fried have been accused of defrauding their customers and are facing charges of securities fraud, commodities fraud, and wire fraud. Bankman-Fried’s trial is ongoing, while Mashinsky’s trial is scheduled for September 17, 2024.
Mashinsky’s lawyers are expected to argue that cryptocurrencies cannot be classified as securities, potentially forming the basis of his defense.
Hot Take: Celsius Network Faces Legal Battles and Uncertainty
Celsius Network’s transfer of $30 million worth of crypto assets comes amidst ongoing legal battles and uncertainty surrounding the company. With its founder facing charges of fraud and the CEL token’s value in decline, Celsius is navigating challenging times.
The decision to shut down the app and repay customers indicates an attempt to address outstanding obligations. However, the future of Celsius remains uncertain as it transitions into a new creditor-owned company.
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