Celsius Network Alters Ethereum Assets Amid Bankruptcy Situation, Stirring Crypto Markets

Author : Dency Emily | Published On : 24 Jan 2024

Celsius Network, currently navigating bankruptcy proceedings, has executed significant Ethereum transactions, transferring substantial amounts to exchanges like Coinbase and FalconX, totaling over $35 million. This strategic move is considered a crucial part of the cryptocurrency lending platform's efforts to address its financial challenges. In the last 10 hours alone, Celsius deposited 13,000 ETH (valued at $30.34 million) into Coinbase and moved an additional 2,200 ETH ($5.13 million) to FalconX, drawing attention in the digital currency community.

Arkham Intelligence reported Celsius's liquidation of over $125 million in Ethereum from January 8 to January 12. This liquidation aims to meet creditor demands and fulfill financial obligations amid the ongoing bankruptcy proceedings. Dune Analytics noted a significant surge in Ethereum redemptions, surpassing $1.6 billion, marking the highest level since last year's Shanghai update.

Despite the financial pressures, Celsius maintains a substantial Ethereum reserve, holding over 557,000 ETH in two staking wallets, valued at around $1.3 billion. The impact of Celsius's recent activities is evident in the Ethereum market, contributing to a 4% drop in Ethereum's value. Concerns loom about breaching the critical $2,350 threshold in the demand zone, with analysts suggesting a potential fall to $2,000 or lower if this level is broken.

As part of a broader financial strategy aligned with their restructuring plan, Celsius Network's Ethereum movements, including unstaking and transferring significant amounts, reflect the company's ongoing efforts to optimize liquidity and address creditor obligations.