Cryptocurrency lender Celsius has taken steps to repay creditors by moving $125 million worth of ether (ETH) to cryptocurrency exchanges. According to a report by Arkham Intelligence, between January 8 and 12, Chelsea transferred $95.5 million to Coinbase and $29.7 million to FalconX.
Celsius’ massive ETH holdings and redemption plan
Despite these transfers, Chelsea still holds a significant amount of Ether on its balance sheet, over 550,000 ETH (equivalent to approximately $1.36 billion). After unstacking approximately 206,300 ETH, the lender announced plans to use these funds for restructuring costs and begin repaying creditors. However, the specific timeline for these repayments remains unclear.
long wait for celsius creditors
Chelsea’s creditors have been left in limbo for more than 18 months, awaiting the return of their funds since the company filed for bankruptcy in July 2022. The latest moves offer a glimmer of hope for stakeholders.
FTX and Alameda Research Transfer $28 Million Cryptocurrency
At the same time, FTX and exchange firm Alameda Research, both embroiled in bankruptcy proceedings, transferred $28 million worth of cryptocurrencies, including Wrapped Bitcoin, Ether, and Pendle, to exchanges such as Coinbase and Binance.
FTX’s asset recovery and creditor repayment
FTX recovered approximately $7 billion in assets, including $3.4 billion worth of cryptocurrency, to repay creditors. Trading as low as $0.50 on the dollar, the market’s reaction to FTX’s creditor claims suggests that creditors are likely to recover a significant amount. Repayments are expected to begin in 2024, but the exact date has not yet been announced.
Important steps for cryptocurrency lenders
Chelsea and FTX’s recent actions represent an important step in their efforts to resolve bankruptcy and creditor repayment issues. The transfer of large ETH holdings to exchanges reflects the ongoing complexities and challenges in the cryptocurrency lending space and highlights efforts to provide some level of resolution to affected creditors and stakeholders.