Celsius Network Moves $1Billion Worth Of ETH

Celsius Network recently transferred a substantial amount of Ether to centralized exchanges fueling speculation about repaying creditors.

Celsius, the failed cryptocurrency loan platform, has transferred a significant amount of Ether to centralized exchanges. This move comes in the wake of anticipation that the company will begin repaying creditors in liquid cryptocurrency around the middle of February.

Several big transactions with Ether were carried out on January 26. The Celsius Network wallet originated these transactions and sent them to deposit wallets for Paxos and Coinbase Prime.

At the time of the transfer from Celsius to another network-controlled wallet in preparation for transferring, the largest transaction was for 443,961 ETH, worth $984 million at the time.

During the subsequent hour, thirteen transactions took place, which resulted in the transfer of this enormous amount of Ethereum to wallets hosted by Coinbase and Paxos, as reported by Arkham, a blockchain intelligence company.

Spotonchain stated that they distributed the majority of the 297,454 ETH sent to Coinbase to 12 fresh wallets, most likely as part of an over-the-counter deal.

Celsius conducted an internal transaction on January 24th, utilizing addresses labeled Celsius Network, Staked ETH and Celsius Network, Eth2 Depositor. This was only two days before the transaction, which occurred on January 24th.

It was said that as of November 13, 2023, Celsius network had sent 757,626 ETH to FalconX, Coinbase, OKX, and Paxos. Furthermore, it was stated that Celsius still possesses 62,469 ETH, currently valued at $138.8 million at the current cryptocurrency value.

Immediately, it is not possible to determine the precise causes behind the recent transactions using Ether. As stated in a frequently asked question (FAQ) about Celsius asset distribution that was revised on January 12th, Coinbase will enable a limited number of corporate accounts to receive Bitcoin.

According to the statement, non-corporate accounts located in the United States will receive payouts through PayPal, while distributions to creditors outside of the United States will be handled by Coinbase.

The “Celsius NewCo Community,” which is a community of Celsius creditors on X (which was formerly known as Twitter), has stated that they anticipate the distribution of liquid cryptocurrency to creditors to begin in the middle of February.

They have also noted that the distribution window will remain open for one year. While this was happening, a user of Celsius known as “TheHawk” revealed that they had successfully removed all of their Ethereum off the platform.

They also mentioned that the funds were in the custody account rather than the earnings account. Data from Arkham Intelligence indicates that Celsius sent an additional $95.5 million to Coinbase between the 8th and 12th of January, while FalconX received a transfer of $29.7 million over the same period.

Earlier this month, the insolvent lending company announced that it started moving assets to “ensure ample liquidity” in preparation for any potential asset distributions.

To “offset certain costs incurred throughout the restructuring process” and “unlock ETH to ensure timely distributions to creditors,” Celsius has announced that it will unstake its existing Ether holdings.

According to Nansen, it does not have any Ethereum that is currently awaiting a staking withdrawal. The administrators of Celsius’s bankruptcy filed a notice of intent on January 9, 2022, advising creditors that account holders who withdrew over $100,000 in the ninety days prior to the company’s bankruptcy declaration on July 13, 2022, may be required to repay the funds by January 31, 2024.