Celsius moves large Ether amounts to repay creditors in Feb

abdelaziz Fathi

Celsius, the now-defunct crypto lending platform, has been actively transferring large quantities of Ether (ETH) to centralized exchanges, hinting at beginning creditor repayments in liquid crypto as soon as mid-February.

Several transfers of Ether from Celsius Network’s wallet to Paxos and Coinbase Prime deposit wallets were spotted today. The largest of these transfers involved 443,961 ETH, valued at nearly $984 million, moved to another network-controlled wallet as a preliminary step.

Following this, blockchain intelligence firm Arkham noted that 13 additional transactions were executed within the next hour, shifting this large amount of ETH to wallets belonging to Coinbase and Paxos. Between January 8 and 12, Celsius transferred an additional $95.5 million worth of assets to Coinbase and $29.7 million to FalconX.

Two days earlier, Celsius had already moved 575,081 ETH in an internal transaction using addresses labeled as “Celsius Network: Staked ETH” and “Celsius Network: Eth2 Depositor.”

Since November, Celsius has reportedly relocated a total of 757,626 ETH to various exchanges, including FalconX, Coinbase, OKX, and Paxos. Despite these transfers, Celsius still holds about 62,469 ETH, currently valued at around $138.8 million.

The precise motives behind these recent Ether transactions remain uncertain. However, a recent update to Celsius’s asset distribution FAQ mentioned that a limited number of corporate accounts would receive cryptocurrency via Coinbase. For non-corporate accounts, repayments to U.S. creditors will be processed through PayPal, while those outside the U.S. will go through Coinbase.

The “Celsius NewCo Community,” a group of Celsius creditors on X anticipates the start of liquid crypto distribution to creditors by mid-February, with the distribution window remaining open for a year. A Celsius user, “TheHawk,” reported successfully withdrawing all their ETH from Celsius, noting that the funds were in a custody account, not an Earn account.

This flurry of activity comes as Celsius stated earlier in the month its intention to shift assets to ensure sufficient liquidity for upcoming distributions. The firm plans to unstake its Ether holdings to cover restructuring costs and ensure timely distributions. According to blockchain analytics platform Nansen Celsius no longer has any ETH pending staking withdrawal.

Interestingly, the Celsius bankruptcy administrators told creditors that account holders who withdrew over $100,000 in the 90 days before the firm’s bankruptcy declaration on July 13, 2022, might need to return those funds by January 31, 2024.

  • Read this next

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    Digital Assets

    Coin Metrics integrates market data from Cboe Digital

    “We are pleased to work with Coin Metrics and believe that having quality and timely data, and systems to analyze that data, will help crypto markets mature as well as evolve to become a core component of a diversified investment portfolio. We are focused on providing access and solutions to the spot and derivatives crypto market in a way which mirrors an investor’s experience with traditional markets.”

    Fintech

    AU10TIX launches KYB solution to address regulatory requirements

    “Our customers have been requesting a comprehensive KYB solution, because money laundering and fraud have become far too prevalent in the corporate world. Our unified KYB/KYC solution is essential for identifying bad actors and maintaining a safe business environment in 2024.”

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

    Fintech

    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    <