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.