Celsius Network, a major cryptocurrency lending platform, has transferred over $125 million worth of Ethereum (ETH) to various exchanges, a move that has generated considerable curiosity and speculation in the crypto world. According to Arkham Intelligence, Celsius has deposited approximately $95.5 million in ETH on Coinbase and transferred an additional $29.73 million to FalconX, leaving it with about 539,000 ETH tokens valued at about $1.38 billion.
This significant transfer follows Celsius’ bankruptcy filing, which highlights a shift in its strategy towards liquidating assets to meet its insolvency obligations. The company, which was a dominant player in the cryptocurrency lending market, found itself in financial turmoil, leading to this drastic measure.
Celsius’ bankruptcy filing was a critical moment in its ongoing financial challenges. Despite the significant transactions, the company retains a significant cryptocurrency portfolio, including over 539,000 ETH and 9,800 BTC, indicating a broader strategy to manage its assets amid a financial restructuring.
The movement of such a large volume of ETH in the Celsius market could potentially put downward pressure on its value. However, the recent approval of the Bitcoin Spot ETF and the subsequent rally in the altcoin market somewhat mitigated this effect. The value of ETH increased by 13% in the last week, showing resilience in the face of these large-scale asset movements.
Celsius wasn’t the only firm to move crypto holdings to exchanges. Bankrupt entities FTX and Alameda Research also transferred significant funds to centralized exchanges, totaling $28.2 million in digital assets. This includes 402.6 Wrapped Bitcoin, 3200 Ethereum and other digital assets. Like Celsius, these firms are trying to manage their assets to pay off creditors and affected customers.
The crypto market is closely watching Celsius’ strategy to address the financial challenges. The impact of its actions, particularly on the Ethereum market, is of considerable interest given the platform’s significant holdings in the cryptocurrency. The bearish sentiment and decline in the value of CEL caused many traders to close their positions, reflecting the market’s reaction to these developments.
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