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In a significant development, crypto lender Celsius has moved over $125 million worth of Ether (ETH) to cryptocurrency exchanges, signaling steps towards repaying its creditors. Between January 8 and 12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX, as reported by Arkham Intelligence.
Looks like Celsius took the opportunity to unload >$125M of ETH over ETF Week.
— Arkham (@ArkhamIntel) January 13, 2024
In the past week, they’ve deposited $95.5M to Coinbase and sent $29.73M to FalconX.
They still have $1.4 billion (540K ETH) remaining.https://t.co/jp1PJbN46r pic.twitter.com/xgfX6yU5Ye
Celsius's Vast ETH Holdings and Repayment Plans
Despite these transfers, Celsius retains a substantial amount of Ether, with over 550,000 ETH (valued at approximately $1.36 billion) still on its balance sheet. Following the unstacking of about 206,300 ETH, the lender announced plans to use these funds for restructuring costs and to initiate creditor repayments. However, a specific timeline for these repayments remains unclear.
Long Wait for Celsius Creditors
Creditors of Celsius have been in limbo for over 18 months, awaiting the return of funds ever since the company filed for bankruptcy in July 2022. The recent movements offer a glimmer of hope for these stakeholders.
FTX and Alameda Research's $28 Million Crypto Transfer
In parallel, FTX and its trading arm Alameda Research, both entangled in bankruptcy proceedings, transferred $28 million worth of cryptocurrencies, including Wrapped Bitcoin, Ether, and Pendle, to exchanges like Coinbase and Binance.
FTX's Asset Recovery and Creditor Repayment
FTX, in its bid to repay creditors, has managed to recover about $7 billion in assets, including a significant $3.4 billion in cryptocurrencies. The market's response to FTX creditor claims, which have been trading as high as $0.50 on the dollar, suggests a potential for creditors to recover substantial amounts. Repayments are expected to commence in 2024, though an exact date is yet to be announced.
A Critical Phase for Crypto Lenders
The recent actions by Celsius and FTX mark a critical phase in their efforts to address bankruptcy and creditor repayment. The transfer of large ETH holdings to exchanges reflects the ongoing complexities and challenges in the crypto lending space, underscoring the efforts to bring some resolution to affected creditors and stakeholders.