Celsius-min

The Celsius Network was among the first crypto firms that announced halting withdrawals because of the bearish market conditions. While the space is still being affected by the bear market, it seems like Celsius is taking strategic decisions to restructure and protect its customer assets, weeks after halting withdrawals, swaps, and transfers.

Celsius repays MakerDAO loan

DeFi lending platform, Celsius, has deposited $500 million worth of wrapped Bitcoin (WBTC) into the FTX exchange. The deposit was done shortly after Celsius repaid its entire debt owed to the MakerDAO lending platform. The debt repayment enabled Celsius to recover the $450M worth of collateral in WBTC.

According to on-chain data shared by Nansen, a blockchain data platform, the wallet affiliated with CEL transferred 24,463 WBTC to FTX. These coins were moved to FTX in several transactions.

CEL had a loan with the MakerDAO lending platform. On July 7, the network announced that it had reclaimed the WBTC used as collateral after the entire debt was repaid to Maker. The Celsius Network also redeemed an installment of 2000 WBTC worth of collateral.

Celsius could dump WBTC in the market

According to analyst Walter Teng, CEL repaying off its liabilities could increase the selling pressure of the assets held as collateral. The WBTC unlocked from Maker is the largest holding Celsius committed as collateral against a loan borrowed from a decentralized finance platform.

The recovery of this collateral could mean that CEL is planning to dump these assets in the market to increase liquidity. However, the on-chain data does not show that the sale of these assets has happened.

WBTC is a derivative product for Bitcoin based on the Ethereum blockchain. At the time of writing, WBTC was trading at around $21,385, within the price range of Bitcoin. The coin had gained by 4.3% during the past 24 hours.

Celsius was among the first networks to announce that they would be halting withdrawals because of “extreme market conditions.” After halting withdrawals, there were fears that the platform was on the verge of insolvency, creating panic among investors.

However, amid the financial troubles facing the DeFi exchange, it hired restructuring consultants. It was also rumored that the company would file for bankruptcy and follow Three Arrows Capital and Voyager. Regulators have also commenced investigations into the lending operations of CEL in the US states.

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