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Celsius, a crypto lending platform, has transferred large amounts of Ether (ETH) to centralized exchanges (CEXs) in anticipation of making liquid crypto payments to creditors in mid-February. On January 26, a series of large Ether transactions were made from the Celsius Network wallet to the deposit wallets of Paxos and Coinbase Prime.
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The most notable transfer was the 443,961 ETH transfer to Celsius’s own network-controlled wallet, which was worth $984 million at the time of the transfer. Blockchain intelligence firm Arkham said that this large amount of ETH was moved to Coinbase and Paxos wallets in 13 transactions within an hour. According to Spotonchain, most of the 297,454 ETH sent to Coinbase was likely distributed to 12 new wallets as part of an OTC deal.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 443,961 #ETH (982,202,866 USD) transferred from #Celsius to unknown wallethttps://t.co/39EY8uFFqa
— Whale Alert (@whale_alert) January 25, 2024
Just two days earlier, The company had similarly transferred 575,081 ETH using the addresses Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor. Celsius Network has transferred a total of 757,626 ETH to FalconX, Coinbase, OKX, and Paxos since November 13, 2023. However, Celsius currently holds 62,469 ETH, which is worth $138.8 million at current prices.
The reason for these recent Ether transactions is not entirely clear, but according to Celsius’ updated asset distribution FAQ on January 12, a limited number of institutional accounts will be able to receive crypto through Coinbase. Creditors’ payments will be made through PayPal for US residents and through Coinbase for non-US residents.
The Celsius NewCo Community
The Celsius NewCo Community, a community group, stated that the distribution of liquid crypto will begin in mid-February and will continue for a year. Additionally, a Celsius user shared that they were able to officially withdraw all of their ETH from Celsius, but their funds were in the custody account, not the Earn account.
🎯 Celsius is aiming for an Effective Date of January 31st.
🗓️ We expect the distribution of liquid crypto to Earn Creditors to start in mid-February.
⏳ The distribution window will be open for one year. pic.twitter.com/TznON0ddBV
— Ionic Digital Community (ex-Celsius) (@IonicDigitalX) January 25, 2024
Celsius had stated that it was moving its assets to “provide broad liquidity” and is currently planning to unstake its existing Ether assets to make timely payments to creditors. The company, through its bankruptcy administrators, has said that account holders who made withdrawals of over $100,000 before the date of the bankruptcy filing on July 13, 2022, may be eligible for repayment of that amount by January 31, 2024.
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