Moving ETH To Centralized Exchanges
Recent developments involving the bankrupt crypto lender Celsius indicate that the firm has moved $125 million worth of Ether (ETH) to different centralized exchanges over the past week. The move is part of a strategic action that aligns with Celsius’s aim to continue its creditor repayments plan.
Per data released by the crypto analytic platform Arkham Intelligence, Celsius transferred substantial amounts of digital assets between January 8 and 12. Two notable transactions included the $95.5 million sent to Coinbase and the $29.7 million sent to FalconX.
Despite the recent transactions, it is worth noting that Celsius still holds a substantial Ether balance of over 550,000 ETH, valued at $1.36 billion based on current market prices.
Meeting Obligation To Creditors
Recall that Celsius took a significant stride earlier this month towards paying its creditors when it unstaked 206,300 ETH, which at the time was valued at $407 million. The crypto lender explained that this significant release of Ether was a decision meant to pay expenses incurred throughout the firm’s restructuring process.
Nevertheless, it still plans to create a financial buffer to meet its obligations to creditors. As a part of this recovery strategy, Celsius has informed its creditors that it would send them BTC and ETH amounts based on their investments and the agreements it reached with them.
However, the firm has yet to state a specific date to distribute these funds. This announcement is good news to Celsius creditors, who have had to wait over 18 months to access their funds.
The assets have been stuck in the platform’s operations since the firm declared bankruptcy in July 2022.
Navigating Crypto Insolvency Challenges
The recent events involving the struggling FTX and its defunct trading arm, Alameda Research, show that Celsius is not the only struggling crypto firm. Meanwhile, recent data from the blockchain analytics platform Spot On Chain revealed that the bankrupt crypto exchange FTX and Alameda Research transferred approximately $28 million in virtual currencies to several exchanges.
A breakdown of this transfer shows that the firm transferred $18.7 million in Wrapped Bitcoin, $8 million in Ether, and $1 million in Pendle (PENDLE) to prominent platforms such as Binance and Coinbase. After filing for bankruptcy protection in November 2022, FTX adopted this measure as part of their active efforts to recover assets to repay their creditors on their behalf.
More importantly, FTX administrators have achieved considerable success in asset recovery from debtors, collecting approximately $7 billion in assets, $3.4 billion of which were BTC holdings. While the firm stated that it would begin repayments this year, it hasn’t chosen any specific start date.
Meanwhile, the FTX creditor claims and several other market conditions caused the total crypto market cap to rise to $1.78 trillion after gaining 1.85% in the last 24 hours.