Celsius Lending Platform Transfers Massive Amounts of Ethereum to Centralized Exchange
The defunct cryptocurrency lending platform, Celsius, has recently been observed moving substantial amounts of Ethereum to a centralized exchange. This development has caught the attention of creditors, as they anticipate the platform to begin paying back creditors in liquid cryptocurrency by mid-February.
Ethereum Transfers to Coinbase Prime and Paxos
On January 26th, multiple significant Ether transfers were detected from the Celsius Network wallet to deposit wallets for Coinbase Prime and Paxos, according to blockchain intelligence company Arkham. Among these transfers, the largest transaction involved the transfer of 443,961 ETH, amounting to a value of approximately $984 million, from Celsius to a network-controlled wallet before further action was taken.
Blockchain Intelligence Reports Multiple Transfers
Arkham’s report outlined a total of 13 transactions where this substantial amount of ETH was transferred to Coinbase and Paxos wallets within the hour following the initial transfer. The firm, Sptochain, shed some light on the matter, stating that “most of the 297,454 ETH sent to Coinbase was distributed to 12 fresh wallets, probably as part of an OTC (over-the-counter) deal.”
Internal Transaction by Celsius
Interestingly, two days prior to these transfers, Celsius carried out an internal transaction on January 24th. This transaction involved the movement of 575,081 ETH using addresses marked Celsius Network: Staked ETH and Celsius Network: Eth2 Depositor.
Implications for Creditors
The recent activities of Celsius have sparked anticipation among creditors, who are hoping that the movement of Ethereum to a centralized exchange is a sign that the platform is preparing to begin repaying creditors in liquid cryptocurrency. These actions are expected to take place sometime in the middle of February, providing some relief to those waiting for their funds.
Transparency Concerns Arise
While creditors look forward to the upcoming repayments, the recent actions of Celsius have also raised concerns regarding transparency. Moving such massive amounts of Ethereum to a centralized exchange has prompted questions about the platform’s intentions and the overall financial stability of Celsius. Creditors will be keeping a close eye on the developments in the coming weeks in hopes of gaining a better understanding of the company’s situation and their own potential for recovery.
Overall, the recent transfers of Ethereum by Celsius to a centralized exchange have generated both excitement and concern among creditors. The anticipation for the repayment process to begin in mid-February is met with cautious optimism, although questions about transparency and financial stability linger. As the situation unfolds, creditors will be eagerly awaiting further updates in the hopes of finally receiving their much-awaited repayments.
Analyst comment
Positive news: The Celsius lending platform has transferred a substantial amount of Ethereum to a centralized exchange, sparking anticipation among creditors for the platform to begin repaying them in liquid cryptocurrency by mid-February.
Market analysis: The movement of Ethereum to a centralized exchange suggests that Celsius may be preparing to repay creditors, which could provide relief to those waiting for their funds. However, concerns about transparency and financial stability remain, and creditors will closely monitor developments for a better understanding of the situation and their potential for recovery.
