Celsius Makes a Dash for the Exchange, Post-Bankruptcy

Celsius Transfers $10 Million of Ethereum to Exchange After Receiving Approval for Bankruptcy Plan

Celsius transfers $10 million in Ethereum to exchange after bankruptcy plan gets approved.

Hop on board as we delve into the whirlwind journey of Celsius, the crypto lending company that just made a move that’s turning heads. They’ve recently whisked away over $10 million worth of Ethereum to an exchange, FalconX. But hold on tight, because this transfer comes just six days after a judge gave the green light to Celsius’ bankruptcy plan. Talk about speed and agility!

According to on-chain data tracked by Lookonchain, Celsius pulled off this daring maneuver by shifting 5,160 ETH, which translates to a staggering $10.49 million. And why, you may ask? Well, dear readers, Celsius is currently undergoing a dramatic transformation under the loving embrace of its creditors. It seems like they’re transitioning to a new model, and calling it NewCo makes it sound oh-so-futuristic and flashy. Picture a phoenix rising from the ashes of bankruptcy, ready to take the digital asset world by storm.

You see, Celsius had a rather rough patch when they filed for bankruptcy back in July 2022, adding to the chaos in the crypto market. But fear not, for they’ve cooked up a plan that’s a real game-changer. Introducing NewCo, the crypto mining and staking firm set to dominate the scene with a swagger-worthy $1.25 billion balance sheet. Talk about leveling up!

So why the sudden sale of Ethereum? Well, our friends at Celsius probably realized that clogging their storage with digital riches was sooo last year. With Ethereum prices soaring like a rocket ship, bouncing back by a staggering 70% since the start of 2023, Celsius cleverly decided to seize the opportunity and cash in at favorable rates. It’s like selling your homemade moonshine during a prohibition era. Smart move, Celsius!

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But wait, there’s more! Celsius is not just teasing us with Ethereum transfers; they’re going all out. Lookonchain reports that Celsius has slyly moved various other tokens to exchanges like Binance and OKX, including stablecoins, governance tokens, and utility tokens. It’s a liquidation extravaganza, my fellow enthusiasts!

The recent approval of Celsius’ restructuring plan seems to have put a pep in their step. This plan transfers ownership of Celsius to its creditors, and these lucky creditors are in for a real treat. With the staking operation brought to life, they could be looking at a sweet $10 to $20 million per year. Who said bankruptcy couldn’t be profitable? It’s like finding a secret treasure chest right before your eyes!

Let’s not forget the turbulent journey that got Celsius to where it is today. The freezing of withdrawals back in June 2022, the whopping $5 billion owed to creditors, and the spine-tingling uncertainty—it’s been a rollercoaster ride. But now, Celsius is taking a bold step away from its retail lending model. They’ve cut ties, making it official with the new bankruptcy plan which explicitly forbids them from “engaging in lending or rehypothecation of assets.” Out with the old, in with the new!

NewCo has a clear mission: to mine and stake like no other. Picture them as digital prospectors, striking gold in the vast Ethereum landscape. By using protocols like Lido, they’re generating staking yields to make those numbers rise and shine. So liquidating those ETH holdings to exchanges is just part of their grand plan. It’s like making a pit stop at a gold shop during your search for more treasure—strategically brilliant!

Celsius has shown us that the world of crypto lending can be a wild ride with dazzling rewards. The allure of attractive yields may have drawn in customers, but it was the risky business practices that put those precious deposits on the line. Thankfully, change is in the air, and Celsius has a fresh team at the helm, ready to steer them towards a more secure and sustainable future.

So, fellow investors, hold on to your hats and keep an eye on Celsius—wherever they’re headed, it’s bound to be a wild adventure with fortunes waiting to be discovered. Let’s embrace the excitement and see where this thrilling chapter takes us!

*[ETH]: Ethereum

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