Celsius Network Transfers $1 Billion of ETH to Exchanges: Reason to Worry?

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The bankrupt cryptocurrency lender Celsius Network has executed large transfers involving roughly $1 billion in ether (ETH) to centralized crypto exchanges Coinbase and Paxos, probably in preparation for its creditor repayment schedule.

According to data from the crypto analytics platform Arkham Intelligence, Celsius moved the funds over 13 transfers, including two test transactions.

Celsius Moves $1B ETH to CEXs

The defunct lender first moved the assets to an address it has been using to interact with the crypto exchanges. After the test transactions worth $22.05 each, the firm transferred 45,000 ETH worth $99.49 million to Coinbase.

Subsequent transfers were made to Coinbase, amounting to 297,454 ETH worth more than $657 million. Paxos, on the other hand, received 146,507 ETH valued at approximately $324 million. Altogether, Celsius sent crypto assets worth over $981 million.

The new transfers come about two weeks after the bankrupt lender sent $125 million in ETH to crypto exchanges. Between January 8 and 12, the firm moved $95.5 million and $29.7 million to Coinbase and FalconX, respectively. The lender unstaked around 206,300 ETH, worth roughly $407 million, earlier this month.

Having sent 443,961 ETH to Coinbase and Paxos, Celsius still has a stash of 106,039 ETH valued at $236 million. Where and when the assets will be moved remains to be seen.

Celsius’ Creditor Repayment Date Approaches

The latest developments follow the approval of Celsius’ reorganization plan by the New York Bankruptcy Court and a green light from the United States Securities and Exchange Commission (SEC).

Before the agency approved the restructuring plan, Celsius planned to transition into Mining NewCo, a Bitcoin mining and staking entity owned by creditors and managed by the Fahrenheit consortium, which won the bid for the lender’s assets in May 2023. The firm’s exit from bankruptcy involved the distribution of $2 billion in BTC and ETH to customers, alongside shares of the newly established company.

However, the SEC’s approval came with changes in the reorganization plan. Celsius will now focus on mining and registering the shares of Mining NewCo, which its customers would own.

Meanwhile, the bankrupt crypto firm is expected to begin repayments on or before January 31, 2024.

The post Celsius Network Transfers $1 Billion of ETH to Exchanges: Reason to Worry? appeared first on CryptoPotato.

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