Crypto News- Celsius executes a massive Ethereum transfer: Celsius, the now-defunct crypto lending platform, made significant moves with Ethereum (ETH), currently trading at $2,242, as it reportedly gears up to repay creditors in liquid crypto by mid-February.
On January 26, a series of substantial Ether transactions occurred, transferring sizable amounts from the Celsius Network wallet to deposit wallets linked to Paxos and Coinbase Prime. The most noteworthy transfer involved 443,961 ETH valued at $984 million at the time, sent from Celsius to another controlled wallet in anticipation of a forthcoming move. Subsequently, 13 additional transactions took place within the hour, funneling this substantial ETH portion to Coinbase and Paxos wallets, as reported by blockchain intelligence firm Arkham. Spotonchain noted that a significant portion of the 297,454 ETH sent to Coinbase was likely distributed across 12 new wallets, possibly part of an over-the-counter (OTC) deal.
Celsius Executes a Massive ETH Transfer of 1B dollars to CEXs: Brace for Potential Repayments
Just two days before, on January 24, Celsius executed another move, sending 575,081 ETH via addresses labeled Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor in an internal transaction.
In total, Celsius has relocated 757,626 ETH to FalconX, Coinbase, OKX, and Paxos since November 13, 2023, with the platform currently retaining 62,469 ETH valued at $138.8 million.
The precise reasons behind these recent Ether transactions remain unclear. However, a Celsius asset distribution FAQ updated on January 12 suggests that a select number of corporate accounts can receive cryptocurrency through Coinbase. For non-corporate accounts, distributions to U.S.-based creditors will be via PayPal, while those outside the U.S. will receive distributions through Coinbase.
The Celsius NewCo Community on X (formerly Twitter) anticipates the initiation of liquid crypto distribution to creditors in mid-February, with the distribution window open for a year. A Celsius user, known as “TheHawk,” reported successfully withdrawing all their ETH from Celsius, clarifying that the funds were in the custody account, not the Earn account.
Between January 8 and 12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX, according to Arkham Intelligence. The move aligns with the lending firm’s previous announcement of asset shifts to ensure ample liquidity for potential distributions.
Celsius Shifts 1B Dollars in Ethereum to Exchanges, Fuels Repayment Speculation
Celsius revealed plans to unstake existing Ether holdings to offset certain costs incurred during the restructuring process and unlock ETH for timely creditor distributions. As of now, there are no pending ETH staking withdrawals, according to Nansen.
On January 9, Celsius bankruptcy administrators signaled the intent to notify creditors that withdrawals exceeding $100,000 in the 90 days before the July 13, 2022 bankruptcy declaration might be subject to return by January 31, 2024.
Despite these developments, ETH prices have shown no immediate reaction, remaining stable at $2,225 at the time of this writing.