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Troubled crypto lender Celsius has paid off an additional $113 million Aave and Compound loans in the last 24 hours as the company continues to fight insolvency.
Celsius Repays $113 Million in Debt
According to a Bloomberg report from today, Celsius has repaid $78 million in USDC stablecoin to the decentralized lending platform Aave, data from Etherescan shows. Similarly, it also repaid $35 million worth of DAI stablecoin to Compound. Since the beginning of this month, Celsius has paid more than $300 million in loans to different platforms. It recently started paying off its debts to free up its collateral placed in DeFi apps. However, it still has a total of $120 million in outstanding debt on Aave and Compound, as per the tracker on Zapper. In the meantime, the platform can unlock around $654 million in collateral by paying off the remaining debt, according to data from Nansen.
Is Celsius Avoiding Bankruptcy?
It has been 30 days since Celsius halted its withdrawals, trades, and all activities, citing bearish market situations. The platform has also cut jobs and hired restructuring experts to tackle its liquidity issues since halting withdrawals on June 13. While other troubled crypto lenders like Voyager Digital and Three Arrows Capital have filed for bankruptcy, Celsius continues to repay its remaining debts. With this, it will be interesting to see if it can avoid bankruptcy.