• 13 October, 2024
News

Celsius Network Shifts Ethereum Assets Amid Bankruptcy, Stirs Crypto Market

Celsius Network Shifts Ethereum Assets Amid Bankruptcy, Stirs Crypto Market

Celsius Network, amidst its ongoing bankruptcy proceedings, has been actively transferring substantial amounts of Ethereum to various exchanges. This strategy is seen as a significant part of the cryptocurrency lending platform’s efforts to navigate its financial challenges

LookonChain, an on-chain analytics platform, reported that within the past 10 hours, Celsius deposited 13,000 ETH, valued at $30.34 million, into Coinbase and moved an additional 2,200 ETH, amounting to $5.13 million, to FalconX. These transactions have garnered attention in the digital currency community for their magnitude and strategic timing.

Meanwhile, Arkham Intelligence reported that from January 8 to January 12, Celsius liquidated over $125 million in Ethereum. This activity aims to fulfill creditor demands and meet financial obligations amidst the bankruptcy. Additionally, Dune Analytics observed a significant increase in Ethereum redemptions, totaling over $1.6 billion, marking the highest level since last year’s Shanghai update.

Despite the financial pressures from court proceedings, Celsius maintains a substantial Ethereum reserve. The company holds over 557,000 ETH in two staking wallets, valued at around $1.3 billion. Celsius’s recent activities have also had a noticeable impact on the Ethereum market. 

The auctioning of Celsius’s Ethereum holdings has contributed to a 4% drop in Ethereum’s value, with concerns about breaching the $2,350 threshold, a critical point in the demand zone. Analysts suggest that if this level is broken, Ethereum’s value could potentially fall to $2,000 or lower.

As previously reported, Celsius has been involved in significant movements of Ethereum (ETH) to centralized exchanges, a strategy that appears to align with their efforts to optimize liquidity and address creditor obligations. These transactions, part of a larger financial strategy, have been crucial in the context of the company’s restructuring plan. In a series of transactions, Celsius Network unstaked and transferred substantial amounts of Ethereum, including a transfer of 10,000 ETH, valued at approximately $23.39 million at the time, to Coinbase and FalconX.

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