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Celsius Moves Nearly $25 Million ETH to Coinbase – What This Means for Creditors

Last Updated April 18, 2024 3:16 PM
Shraddha Sharma
Last Updated April 18, 2024 3:16 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • Celsius Network transferred Ethereum worth around $24.5 million to Coinbase.
  • The transfer could be part of Celsius’ efforts to repay $3 billion to creditors following its bankruptcy.
  • The Ethereum market saw a minor price decrease following the transaction.

Celsius Network has transferred 8,091 Ethereum (ETH) tokens, worth approximately $24.5 million, to Coinbase. Spot On Chain  notes it to be the largest Ethereum deposit by Celsius in the last three months. Is this move part of Celsius’s efforts to repay creditors as part of its bankruptcy proceedings?

Celsius Moves 8,000 ETH

Celsius Network, once a major crypto player that was pushed to bankruptcy, has reportedly moved 8,091 Ethereum (ETH) tokens. The transfer is valued at around $24.5 million and was made to the Nasdaq-listed Coinbase crypto exchange.

Spon On Chain notes that the transaction was executed at an average price of $3,022 per ETH. Moreover, it was the largest Ethereum deposit by Celsius in the past three months.

The development could be part of the broader efforts by Celsius to manage its bankruptcy exit by fulfilling creditor commitments.

At the end of January, Celsius Network LLC announced  its successful exit from bankruptcy, having completed the transactions outlined in its confirmed plan of reorganization.

As per the release, the plan was approved by approximately 98% of the company’s account holders and confirmed by the Bankruptcy Court for the Southern District of New York in November 2023. It revealed that over $3 billion in assets were distributed to the creditors, and a new entity called Ionic Digital, Inc. was created. The entity was owned by the creditors and managed by Hut 8 Corp. The attempt was to leverage mining operations for revenue generation.

Celsius’ Recovery Process

Following Celsius’ substantial transfer of Ethereum to Coinbase, the cryptocurrency market experienced a slight downturn in Ethereum prices. The price weakness was accompanied by fluctuations in trading volume. Such market reactions are not uncommon following large-scale asset transfers, as they may trigger temporary liquidity and sentiment shifts among traders and investors. The price of ETH recovered above $3,000 soon after that.

For creditors seeking to access their distributions, crypto commentator CelsiusFactsNumbers  has tweeted detailed tips. These include instructions on how to respond to inquiries about the source of funds. People should, the post said, provide screenshots from the Celsius app or relevant documentation from official bankruptcy filings.

Additionally, the commentator shared technical advice for overcoming hurdles related to document uploads on platforms like Coinbase.

To access claimed funds, Celsius creditors had to provide evidence of their holdings through screenshots or official documents. They were also required to respond to verification requests and make necessary uploads for identity verification.

Major Transfer in Months

Celsius Network’s recent transfer of Ethereum to Coinbase could be to meet its obligations to creditors following its emergence from bankruptcy.

The transaction had a slight impact on the Ethereum price but it seems like a part of a calculated approach to manage liquid assets.

As Celsius continues to settle its debts and restructure its operations, the focus remains on stabilizing its financial footing. Meanwhile, creditor recoveries will depend on providing holding information and identity verification.

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