- Ethereum Moves for Celsius: Uncertainty surrounds bankrupt cryptocurrency lending platform with notable Ethereum transfers.
- Bulk Transfer: On January 26, the company moved 443,961 ETH, valued at $984 million, to Coinbase Prime, Paxos, and FalconX wallets, succeeding other significant stocks.
- Cryptocurrency Distribution: The creditor community anticipates the distribution of liquid cryptocurrencies from mid-February, aligning with information on corporate and non-corporate accounts revealed in the FAQ update.
Amid the uncertainty surrounding bankrupt cryptocurrency lending platform Celsius, substantial Ethereum (ETH) moves have been recorded.
On January 26, Celsius transferred a massive amount of 443,961 ETH, valued at $984 million at the time of the transaction, to wallets controlled by Coinbase Prime, Paxos, and FalconX.
This move follows other significant actions, including a transfer of 575,081 ETH two days earlier.
— Whale Alert (@whale_alert) January 25, 2024
Data from Whale Alert indicates that, since November 13, 2023, Celsius has moved a total of 757,626 ETH to various exchanges, such as FalconX, Coinbase, OKX, and Paxos.
The company’s community of creditors, known as “Celsius NewCo Community”, anticipates that the distribution of liquid cryptocurrencies to creditors will begin in mid-February, and the distribution period will extend for one year.
This coincides with information revealed in an FAQ update on the firm’s asset distribution, which notes that limited corporate accounts will receive cryptocurrency through Coinbase, while non-corporate accounts in the US will be distributed through PayPal, and accounts outside the US will receive their funds through Coinbase.
The exact nature of these recent Celsius transactions on Ethereum is still unclear
However, there is speculation that they could be related to Celsius preparing to begin repaying its creditors in liquid cryptocurrencies from mid-February.
One user, identified as “TheHawk,” reported successfully withdrawing all of his ETH from Celsius, noting that the funds are now in the escrow account, not the earnings account.
This stream of events unfolds against the backdrop of the company’s bankruptcy, which has taken steps to ensure liquidity in preparation for potential asset distributions.
Celsius announced its intention to unlock ETH by highlighting its existing holdings to “offset certain costs incurred during the restructuring process” and ensure timely distributions to creditors.
Bankruptcy trustees issued a warning to account holders who withdrew more than $100,000 in the 90 days before filing for bankruptcy on July 13, 2022, indicating that repayments may be required by January 31, 2024.
Despite these developments, Ethereum price has not shown any significant reaction so far, holding at $2,225 at the time of writing.
Celsius continued situation raises questions about the future of the platform and the impact these moves will have on the users and creditors involved.