Express
Celsius On Track to Rebound After Paying $95M in Debt, Freeing up $172M in Collateral
Summary: Celsius Network, a troubled crypto lender dealing with insolvency problems, paid down $95 million of its debt to the Aave and Compound, freeing up $172 million of collateral, according to data on Nansen Portfolio tracker. Celsius performed a similar move last week on the Maker platform which freed up $480 million in collateral, putting Celsius ...
Celsius Network, a troubled crypto lender dealing with insolvency problems, paid down $95 million of its debt to the Aave and Compound, freeing up $172 million of collateral, according to data on Nansen Portfolio tracker.
Celsius performed a similar move last week on the Maker platform which freed up $480 million in collateral, putting Celsius up $652 million in acquired collateral over the last week. According to Nansen data, a wallet linked to Celsius transferred $35 million in DAI, MakerDao’s stablecoin, and $40 million in USDC in various transactions.
After the moves, the company still owed $123 million to Aave and Compound, two decentralized finance (DeFI) protocols, which is about half of what it owed as of last Friday, according to DeFi data platform Zapper’s dashboard.
This announcement comes several weeks after its June 12 statement halting withdrawals, Swap and transfers between accounts on the platform. Their troubles date back to December of last year when it lost $54 million worth of Bitcoin that it invested with the Defi platform BadgerDao, who was hacked. In addition, Celsius was exposed to TerraUSD (UST) at some level, which plummeted from its peg at $1 to mere pennies in the course of a week.
However, their recent moves of paying back loans and freeing up collateral seem to suggest Celsius is moving in the right direction and potentially restarting their services for their users.
On June 27, it was reported that Celsius denied their lawyers’ recommendation for filing for bankruptcy. Celsius’ denial is sure looking good at the moment as they appear to be on track to salvage the company. There is still much more that remains unknown in this process and Celsius has been rather quiet in these proceedings, partially as a result of legal advice.
Author: Tyler Irvin
Tags: bankruptcy,Celius,debt,loan,TerraUSD
Link: Celsius On Track to Rebound After Paying $95M in Debt, Freeing up $172M in Collateral [Copy]