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November 15, 2023

Celsius Transfers Millions of Dollars Worth of Ethereum in Bankruptcy Plan Approval

Ethan Williams
Written byEthan WilliamsWriter
Researched byNikos PapadopoulosResearcher

According to on-chain data, an address associated with the failed crypto lending platform Celsius has transferred millions of dollars worth of Ethereum (ETH) to an exchange. The data obtained from blockchain explorer Etherscan reveals that Celsius moved 5,160 ETH, equivalent to approximately $10.49 million, to the institutional crypto trading platform FalconX.

Celsius Transfers Millions of Dollars Worth of Ethereum in Bankruptcy Plan Approval

Possible Asset Sale

Lookonchain, an on-chain data tracker, suggests that Celsius, which filed for bankruptcy in July 2022, may be looking to sell some assets due to the rising prices. Ethereum is currently trading at $2,033, showing an increase of nearly 80% year-to-date.

Previous Transfers

In addition to this recent transfer, Celsius also moved 428,000 staked Ether (STETH), valued at $780 million at the time, from the liquid staking solution Lido Finance in the first half of the year. Furthermore, five days ago, Celsius transferred various tokens, including stablecoins, the governance token of the Abracadabra DeFi platform Spell (SPELL), and the utility token of the Brave browser Basic Attention Token (BAT), to FalconX, Binance, and OKX crypto exchanges.

Bankruptcy Plan Approval

This significant Ethereum transfer by the bankrupt crypto lender comes shortly after a judge approved Celsius' bankruptcy plan. Under the plan, Celsius will be converted into a crypto mining and staking firm called NewCo, which will be owned by the creditors. NewCo is expected to have a balance sheet of $1.25 billion, with 36% of it being liquid crypto. The liquid crypto will be staked on the Ethereum network, potentially generating an annual income of anywhere from $10 to $20 million.

Conclusion

The recent movement of Ethereum by Celsius raises questions about the intentions behind the transfer. With the approval of the bankruptcy plan, Celsius is undergoing a transformation into a crypto mining and staking firm, which could potentially benefit the creditors. As the crypto market continues to evolve, it is crucial for investors to stay informed and exercise caution when making high-risk investments.

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Ethan Williams
Ethan Williams
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Ethan Williams, a lively 24-year-old lad from the UK, brilliantly fuses his passion for online casinos with top-notch English localisation, creating bespoke casino guides for Britain's keen gaming lot.

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