Dormant ETH Whale Awakens
An investor has dumped 39,260 ETH, equivalent to $87.5 million, to the Kraken crypto exchange after five years of inactivity, according to the crypto tracking platform Lookonchain. Between June and August 2017, the same investor received 47,260 Ethereum worth $11.34 million at around $240 per ETH.
The following year, the investor sold 8,000 ETH and has not made a move since. Should the investor sell its holdings on the Kraken exchange, it would have made approximately $78 million in profits.
It is interesting to see how the crypto market has evolved, with investors profiting handsomely from digital asset investments made years ago. Lookonchain also reported that an unspecified whale was detected on-chain making huge profits by selling wrapped Bitcoin (wBTC).
The crypto tracking platform stated that the investor consistently bought wBTC at low prices and sold it at higher prices, earning over $24 million in gains.
Celsius Linked Account Sees Increased Activities
Earlier this week, an address linked to the bankrupt crypto lending platform Celsius moved $16.7 million worth of ETH to FalconX, an institutional digital asset trading platform, according to Lookonchain. The crypto tracker further revealed that Celsius has sent 37,260 ETH worth $83 million to FalconX, Coinbase, and OKX over the past three weeks.
Before bankruptcy, Celsius was a cryptocurrency lending platform where users could earn interest on their cryptocurrency investments. However, the company experienced financial difficulties and declared bankruptcy in the United States last summer.
The US Department of Justice (DoJ) recently arraigned the firm’s former CEO, Alex Mashinsky, on fraud charges. FalconX is well-known for its fast trading and low fees, which have helped it gain popularity among institutional investors.
Celsius’ Bankruptcy Debacle
Celsius filed for Chapter 11 bankruptcy in July 2022 after the value of its token fell by 99%, and it could not process withdrawal requests. Since then, the firm has worked on a plan to repay its creditors.
In November, a US bankruptcy judge approved Celsius’s plan to help generate funds for a new mining and staking corporate arrangement designed to compensate creditors. The new company, “NewCo,” has a $1.25 billion balance sheet and $450 million in liquid crypto assets.
The plan is expected to allow creditors to recover funds and acquire shares in the reorganized entity, NewCo. Celsius creditors will receive approximately $2 billion in the new firm’s Bitcoin, Ethereum, and equity.
In addition, Celsius customers will be shareholders in the “Mining NewCo” entity, which will be publicly traded in the United States. Although negotiations are ongoing, the Debtors anticipate that the aggregate fees and other economic incentives to be paid to the Mining NewCo’s operators will be lower than those associated with the Fahrenheit NewCo, the winning bidder.
