- Celsius has transferred over $125 million of Ether to crypto exchanges as part of its plan to begin repaying creditors from its bankruptcy. Between January 8-12, it moved $955 million to Coinbase and $297 million to FalconX.
- FTX and its trading arm Alameda Research have also transferred around $28 million in crypto to exchanges recently as FTX seeks to raise funds for creditor repayments. This included Bitcoin, Ether, and Pendle sent to Coinbase and Binance.
- While Celsius and FTX have started moving crypto holdings to exchanges, there is still a lengthy process ahead before all lost funds are returned to creditors and clients from the bankruptcies.
Embattled crypto lender Celsius has shifted more than $125 million worth of its Ether (ETH) to crypto exchanges over the past week. This is part of its plans to begin repaying creditors that have been waiting for over 18 months to receive funds stuck on the platform.
Between January 8 and January 12, Celsius transferred $955 million to Coinbase. Meanwhile, $297 million was transferred to FalconX according to data from Arkham Intelligence. However, Celsius still holds more than 550,000 ETH on its books, worth over $136 billion at the time of writing.
On January 5, Celsius moved to unstake a massive 206,300 ETH, worth $407 million at the time. The lender claimed the newly-liberated Ether would pay for costs incurred through its restructuring process and prepare to repay creditors. Celsius has stated it would distribute Bitcoin (BTC) and ETH to creditors in its recovery plan, but has yet to specify a date for repayments.
FTX and Alameda Transfer $28 Million to Exchanges
Celsius wasn’t the only troubled firm moving crypto holdings to exchanges recently.
On January 14, bankrupt crypto exchange FTX and its defunct trading arm Alameda Research transferred $28 million in crypto to exchanges according to blockchain analytics platform Spot On Chain. The transfers included $187 million worth of Wrapped Bitcoin, $8 million of Ether, and $1 million of Pendle (PENDLE) to Coinbase and Binance.
After declaring bankruptcy in November 2022, FTX has sought to raise funds for creditor repayment. FTX administrators have successfully reclaimed approximately $7 billion in assets, including a substantial $34 billion in cryptocurrency.
The market has warmed to FTX creditor claims, with some trading for as high as $0.50 on the dollar in October 2023. This suggests creditors have a reasonable chance of being made whole. While there is no exact date, FTX customer repayments could begin sometime in 2024.
Conclusion
As Celsius and FTX work to pay back billions lost by creditors and clients, the transfers of crypto to exchanges represent initial steps in that direction. However, there is still a long process ahead before all funds are returned. The saga underscores the risks involved with centralized crypto firms.
