in distress cryptocurrency company Celsius has repaid its debt to decentralized lending protocol Maker and WBTC He deposited $500 million in WBTC on cryptocurrency exchange FTX a few hours after he repurchased his $450 million collateral, which was still standing.
Blockchain transaction data shared by blockchain data company Nansen shows that a wallet affiliated with Celsius sent 24,463 WBTC to FTX with various transactions.
Celsius sent 24,262 WBTC (about $500 million) to FTX.#Bitcoin pic.twitter.com/D6qZLkUFjW
— Bitcoin System (@bitcoinsystem) July 7, 2022
Earlier on Thursday, it was reported that Celsius had repurchased 21,963 wrapped Bitcoin (WBTC) tokens after fully paying off its debt to Maker. Celsius had already reclaimed a 2,000 WBTC installment of its collateral on Tuesday.
“Celsius’ Move May Create Selling Pressure for Cryptocurrencies Shown as Collateral”
Fundstrat analyst Walter Teng said in a statement on the subject:
“Celsius’s move away from leverage in on-chain activities could increase the tide of sales in collateralized assets.”
One of the company’s largest assets collateralized in return for DeFi loans is known as WBTC.
The move suggests Celsius may sell assets for more liquid assets, but market data on the exchange doesn’t suggest that has happened yet.
At the time of this writing, WBTC has changed hands at $21,600, up 6% in the last 24 hours. bitcoin traded closely.
Celsius, citing “extraordinary market conditions”, stopped withdrawals and all user transfers from June, leading to fears that the company could face bankruptcy.
The company also hires restructuring advisors, while regulators have launched investigations into the cryptocurrency company’s operation in several US states.
*Not investment advice.