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Bankrupt Cryptocurrency Lender Celsius Transferred Almost $900 Million in ETH Over the Course of a Week: Data
Celsius’ wallets have been notably active during its ongoing bankruptcy and restructuring efforts. The troubled crypto lender – which continues to be one of the largest firms holding a staked ETH portfolio – has moved nearly $900 million worth of the cryptocurrency in the last week.
Celsius’ Ether Transfers
As per information provided by the blockchain analytics company Arkham, Celsius has transferred approximately $20 million of ETH to Wintermute OTC and Custody Withdrawals. Following this, the bankrupt crypto lending entity also sent 30,800 ETH, valued at about $57 million at the current price, to a smart contract named “Figment ETH2 Beacon Depositor 1.”
The transaction to Figment, which operates as a non-custodial service, marked one of the most significant fund movements for the crypto lender since it sought Chapter 11 bankruptcy protection in July.
Additionally, Arkham noted that Celsius unstaked the $779 million of ETH it had with the liquid staking derivatives protocol, Lido, which allowed withdrawals starting May 15 following a protocol upgrade to v2. The fund movement by Celsius is not unexpected, considering that several entities that withdrew their staked ETH have begun re-staking them since mid-April.
In response to the move, Bitcoin pioneer and Celsius creditor Simon Dixon suggested that the firm might be “preparing for staking directly without Lido as an intermediary.” The withdrawn ether could also be utilized as part of the platform’s restructuring and creditor repayment strategies.
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Celsius Developments to Date
Earlier this month, Celsius permitted eligible users to withdraw the remaining 6% of distributable custody assets from the platform following court authorization. These users – primarily those who had only ever maintained funds in custody accounts – were restricted to withdrawing up to 94% of their funds until January of this year.
This reimbursement initiative was perceived as a positive development for the now-defunct crypto lender, which halted user withdrawals last June due to immense pressure following the abrupt collapse of the blockchain project Terra and the ensuing downturn of the crypto market.
Celsius filed for consolidation of its US and UK entities amid allegations of poor record-keeping and significant shortcomings in its internal systems.
Its founder Alex Mashinsky faced accusations of defrauding investors out of billions of dollars in cryptocurrency by concealing the “failing health” of the lending platform. The executive – who resigned from his CEO position in September – submitted a response seeking to dismiss the complaint filed against him by New York State.
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