Early morning on December 1st, Celsius transferred 9,600 ETH (approximately $19.5 million USD) to Coinbase and OKX. Just two days prior, Celsius also sent 5,000 ETH (around $10.13 million USD) to Binance and OKX via FalconX.
Currently, the purpose of Celsius’ ETH transfers remains unclear, but it is highly likely that Celsius is preparing to sell tokens to raise funds for repaying debts. This is because the deadline for repaying $2 billion USD in Bitcoin and Ethereum to creditors affected by the bankruptcy following the Terra “disaster” is approaching, expected in early 2024.
It’s worth noting that Celsius officially filed for bankruptcy in July 2022 due to severe repercussions from the Terra incident. Since then, Celsius has been making continuous efforts to “rebuild.” Most recently, the court has granted Celsius Network permission to resume its business operations. However, instead of offering cryptocurrency loans as before, Celsius has transformed into a Bitcoin (BTC) mining company owned by its creditors.
Although the plan has been approved by the bankruptcy court, it still requires approval from the U.S. Securities and Exchange Commission (SEC). If not approved, Celsius may need to liquidate its assets. Judge Glenn has urged the SEC to make a decision promptly.
According to Celsius’ circulated accounting balance sheet from April, the total value of the Altcoins held by Celsius is $218 million USD and includes CEL, MATIC, ADA, LINK, LTC, DOT, BCH, AAVE, UNI, XLM, SOL, EOS, FIT, SRM, and BNB. CEL is Celsius’ native token, with MATIC and ADA being the majority of the holdings.