Crypto lending platform Celsius has initiated the transfer of over $125 million worth of its ether on various cryptocurrency exchanges in the past week. Data from Arkham Intelligence reveals that $95.5 million was sent to Coinbase, and $29.7 million was sent to FalconX between January 8 and 12. This move is part of Celsius's strategy to begin the repayment process to creditors. Celsius plans to distribute Bitcoin and ETH to creditors as outlined in its recovery plan. However, a specific date for the commencement of fund distribution has not been provided.
Creditors of Celsius have been awaiting fund recovery for over 18 months since the platform declared bankruptcy in July 2022. The recent transfer of crypto assets to exchanges is seen as a step towards fulfilling these obligations. Celsius is not the only troubled company taking such actions; on January 14, bankrupt cryptocurrency exchange FTX and its defunct trading arm, Alameda Research, moved $28 million in cryptocurrencies to exchanges, including $18.7 million in Wrapped Bitcoin, $8 million in Ethereum, and $1 million in Pendle (PENDLE) to Coinbase and Binance.
FTX, which declared bankruptcy in November 2022, has been actively seeking funds to settle its creditors. The exchange has successfully recovered around $7 billion in assets, including $3.4 billion in cryptocurrency. The market sentiment toward FTX creditor claims has improved, reaching as high as $0.50 in October 2023, indicating a positive outlook for creditors to receive compensation. Although there is no fixed date for the commencement of repayments, the current plan estimates that FTX customers can expect reimbursements to start sometime in 2024.
