Celsius Transfers Over $125M in Ether to Exchanges to Begin Repaying Creditors
Celsius, a troubled cryptocurrency lender, has recently moved over $125 million in Ether to cryptocurrency exchanges, including Coinbase and FalconX. These transfers are part of the company’s efforts to begin the process of repaying its creditors.
Despite these transfers, Celsius still holds over 550,000 ETH, valued at approximately $1.36 billion. On January 5th, the company unlocked 206,300 ETH, worth $407 million, stating that this move was intended to cover costs related to its restructuring and prepare for creditor repayments. However, the firm has not yet provided a specific date for the start of repayments.
Transfers by FTX and Alameda Research
Simultaneously, FTX and Alameda Research, also facing financial difficulties, have transferred $28 million worth of cryptocurrencies, including Bitcoin (wBTC), Ether, and Pendle (PENDLE), to Coinbase and Binance. These movements are part of FTX’s ongoing efforts to raise funds for creditor repayments.
Celsius creditors have been waiting for over 18 months to be repaid funds locked on the platform since the company’s bankruptcy declaration in July 2022. On the FTX side, the company has been striving to recover funds for creditor repayments since its bankruptcy last November. FTX administrators have managed to recover approximately $7 billion in assets, a significant portion of which is in cryptocurrencies.
Hope for FTX Creditors
The market appears to be positively receiving the claims of FTX creditors, with certain rights trading as high as $0.80 for a dollar. This suggests that creditors have a reasonable chance of being fully repaid. Although no specific date has been set for the repayment of FTX clients, the current plan is for repayments to begin as early as this year.
