Celsius, a bankrupt cryptocurrency lending platform, transferred 459,561 ETH worth more than $1 billion to Coinbase, Paxos and FalconX in the last 24 hours, per on-chain data. moved to centralized exchanges including FalconX).
Specifically, over 300,000 ETH, equivalent to $673 million, was transferred to Coinbase Prime. The company also transferred 146,507 ETH worth approximately $323.3 million to Paxos and 7800 ETH worth $17.2 million to FalconX.
This latest transfer follows a string of similar fund moves by Celesius recently. On January 24, blockchain research firm Lookonchain reported that the company had deposited 18,000 ETH worth $40 million into Coinbase.
Meanwhile, cryptocurrency analytics platform Spot on Chain provided a more in-depth analysis of the transfer. According to the company, Celsius has deposited 740,321 ETH worth approximately $1.69 billion in centralized exchanges such as FalconX, Coinbase, OKX, and Paxos since November 2023.
However, despite these transactions, the company still holds a significant amount of ETH. The address holds 62,468 ETH, equivalent to approximately $139 million at press time.
Why is celsius making this transmission?
According to Spot On Chain’s analysis, approximately 97.2% of all funds deposited in Coinbase have been withdrawn to 12 newly created wallets, suggesting the possibility of over-the-counter (OTC) trading.
“Shortly after Celsius deposited $ETH into CEX, we noticed that 12 new wallets withdrew 296,835 $ETH (660 million) from Coinbase. This accounts for approximately 97.2% of the total deposit amount. This will likely be an OTC transaction,” the company said.
Meanwhile, the motive for the transfer has not yet been revealed. However, this is consistent with creditors’ expectations of a potential repayment start in February.
On January 25, Celsius Newco Community suggested that the company’s effective date is January 31 and that it expects to distribute liquid cryptocurrency to beneficial creditors starting in mid-February.
The Chelsea Distribution FAQ implies that Coinbase is the platform of choice for repaying creditors in certain countries. 89 countries (excluding the US) are eligible for Coinbase distribution.