Celsius Moves 10K ETH To Coinbase: Here’s Why
Asset Rebalancing
The bankrupt crypto lending platform Celsius Network recently announced its intention to unfreeze some of its Ether (ETH) assets. Celsius revealed on its X handle a plan to recover and reorganize its assets as part of its revamped strategy.
The rationale for this move is to lay the groundwork for future asset allocations for the organization’s creditors. During the 2022 crypto market volatility, the firm stopped processing withdrawals due to the strong bearish market conditions.
Then, the company sought Chapter 11 bankruptcy protection under the US Bankruptcy Code last year after suspending customer withdrawals. With the recent development, Celsius aims to be proactive with its asset distribution.
The platform is attempting to strategically manage potential future situations by unfreezing and changing its Ethereum holdings. Furthermore, the move will enable Celsius Network to stabilize its financial status.
Unstaking Ether Holdings
The unstaking of Celsius Network’s Ethereum (ETH) holdings is the focal point of a comprehensive asset rebalancing operation that the company has initiated. It is important to note that these holdings generated considerable staking rewards and income for the platform in the past.
The platform anticipates several significant activities in unstaking proceedings over the next few days. This process will free up ETH, which would pave the way for the platform’s creditors to receive their payments in a timely manner.
Celsius Network aims to keep its commitment to creditors who satisfy its eligibility requirements, assuring them that they will receive payments in accordance with the company’s plan that its executives have approved. Bitcoin (BTC) and Ethereum (ETH) are two of the assets that the company intends to distribute. The distribution of these assets represents a concrete commitment to the company’s debt payoffs.
Assets Transfer Sequences
Accordingly, Lookonchain, a blockchain data aggregation platform, revealed that the embattled crypto lender sent 10,000 ETH, or $22.4 million, to Coinbase recently. The data also disclosed that there has been a string of changes in Celsius Network’s ETH holdings, and this transfer is just the latest in this regard.
Lookonchain data shows that Celsius Network has been consistently transferring large amounts of ETH from its staking wallets over the past few months. In particular, staking pools associated with Celsius have had 184,000 ETH, worth over $413 million, removed from them.
These wallets sent these funds to prominent crypto exchanges, particularly OKEx, FalconX, and Coinbase. The data further revealed this ongoing transfer of ETH from staking pools associated with Celsius started around November 13.
Nevertheless, Celsius continues to hold two large staking wallets, which together contain almost 634,000 ETH. At their present market value, these assets are worth $1.42 billion. The continuous transfers of Ethereum (ETH) from the staking wallets of Celsius Network to other cryptocurrency exchanges highlight the platform’s endeavors to manage its assets in the face of financial challenges. Despite its challenges, Celsius still has firm control of its cryptocurrency assets and plans to use them strategically.
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