Blockchain analytics firm Spot On Chain reported on X (formerly Twitter) that Celsius Network, the cryptocurrency lending platform, recently transferred 8,091 Ethereum (ETH) tokens worth approximately $24.5 million to Coinbase. This transaction, which took place at an average price of $3,022 per ETH, marks the largest Ethereum deposit made by Celsius Network in the last three months.
Spot On Chain also highlighted earlier transactions by Celsius Network. From Nov. 13, 2023, to Jan. 31, 2024, the company moved a staggering 847,626 ETH, equivalent to around $1.90 billion, to various centralized exchanges. These transfers were reportedly conducted for over-the-counter (OTC) deals.
#Celsius Network returned to deposit 8,091 $ETH ($24.5M) to #Coinbase at ~$3,022 9hrs ago.
Notably, this is their largest $ETH deposit in 3 months. Previously, from Nov-13-23 to Jan-31-24, Celsius moved 847,626 $ETH (~$1.90B) to various CEXs, allegedly for some OTC deals.… pic.twitter.com/mVtEV6UOA4
— Spot On Chain (@spotonchain) April 17, 2024
Repayment to creditors
The recent transfers come in the wake of Celsius Network’s announcement in February that it had initiated the repayment of $3 billion in cryptocurrencies and fiat currencies to its creditors. This significant step marked the conclusion of Celsius Network’s bankruptcy proceedings.
As part of its bankruptcy exit strategy, Celsius Network introduced Ionic Digital, a Bitcoin mining firm. Ionic Digital is set to operate independently and will continue to generate recoveries to satisfy the claims of creditors. This move reflects Celsius Network’s commitment to fulfilling its obligations and rebuilding its financial stability.
Troubled past
Celsius Network’s recent financial moves come 18 months after the platform halted withdrawals in June 2022. This freeze was precipitated by a severe crypto market crash triggered by the $45 billion loss in the value of Terra’s Luna cryptocurrency. A month into the suspension of withdrawals, Celsius Network filed for Chapter 11 bankruptcy.
However, the recent Ethereum transfer to Coinbase by Celsius Network is seen as a part of the company’s ongoing efforts to repay its creditors and emerge from bankruptcy. With the creation of Ionic Digital and the repayment of a significant portion of its debts, Celsius Network appears to be on a path toward financial recovery and stability.
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