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Breaking: Is Celsius Selling All Withdrawn stETH To Coinbase Custody?

Exchange

coingape.com 13 July 2022 11:17, UTC
  
Reading time: ~2 m

Beleaguered crypto lender Celsius has now withdrawn all staked Ethereum (stETH) collateral after repaying its USDC loan completely on Aave and sent it all to another address. In fact, the address seems to be of Coinbase Custody after CEO Ryan Bozarth hints they bought stETH from the crypto lender at discount.

Meanwhile, the pressure on Celsius to disclosure their financials are rising after Vermont joins other U.S. states in investigating the troubled crypto lender.

Is Celsius Selling stETH to Coinbase Custody

Celsius has paid off its outstanding USDC loan on Aave completely and withdrawn 10,463 stETH collateral worth $11 million. Yesterday, the crypto lender withdrew 400,000 stETH worth $416 million from the Aave address. The outstanding debt on the Aave wallet is REN worth $72,809.

According to Zapper.fi, the Celsius Wallets Combined shows the total outstanding debt has now been reduced to $50 million. Celsius is now left with its Compound loan of $50 million in DAI. There is also an outstanding $3.20 million fUSDC debt from Notional Finance that is to be repaid by September 25.

Interestingly, Celsius has transferred these 410,513 stETH, including 400,000 stETH, 43 stETH, and 10,463 stETH in two transactions to an unknown wallet address. The wallet now has 410,513.08 stETH worth $435 million.

Coinbase Custody CEO Ryan Bozarth in a tweet implies that they have bought stETH from Celsius. While explaining the strategy or thought process behind the move. He said:

“1 stETH can be redeemed for 1 ETH. stETH is already trading at a discount. Opportunity to buy at an even bigger discount is an easy win.”

However, he also said he is speaking for himself. He agreed that arbitrage is a low-risk opportunity, and Coinbase may prefer discounted assets over distressed companies.

Meanwhile, Vermont’s Department of Financial Regulation has started investigating the crypto lender. Vermont has now joined other state securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington in investigating the crypto lender’s decision to suspend customer withdrawals.

Crypto Lender Refuses to Reveal Financials and Loses $6 Billion Bailout

Simon Dixon, CEO of BnkToTheFuture and Celsius’ largest shareholder, revealed in a YouTube interview that Celsius has lost the $6 billion bailout from him after the firm fails to disclose financial details.

The shareholder has offered Celsius a recovery plan, but Celsius fails to be transparent about the company’s financial situation. Recently, the beleaguered crypto lender hired the new law firm Kirkland & Ellis LLP as part of the restructuring plan.

Despite paying the DeFi loans by Celsius, the FUD surrounding bankruptcy seems to be rising.


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