Cryptocurrency lending platform Celsius, which filed for bankruptcy last year, has taken steps to sell its altcoin assets by converting them to Bitcoin (BTC) and Ethereum (ETH), as authorized by a US judge overseeing the bankruptcy case. Altcoin assets were transferred to FalconX, a crypto-asset trading platform that facilitates their transfer to Binance. Additionally, Celsius has deposited a significant amount of BONE tokens on OKEx. Apart from that, $7.84 million SNX has been put into action. These moves come at a time when Celsius’s former CEO Alex Mashinsky is dealing with the arrest of several charges, further complicating the company’s situation. Here are the details…
Cryptocurrency company
Celsius has sold a significant portion of its altcoin holdings, according to blockchain analytics firm Lookonchain. The company has already mobilized 1.27 million Chainlink (LINK) tokens worth approximately $8.5 million. It also sold 2.83 million Synthetix (SNX) tokens worth $7.84 million. 12,597 Binance Coin (BNB) tokens worth $3 million and 45 million 1inch (1INCH) tokens worth $2.26 million were transferred. It mobilized 8.53 million 0x (ZRX) tokens worth $1.9 million and 439,000 FTX Tokens (FTT) tokens worth $713,000. So, Celsius transfers point to a list as follows:
- 1.27 million LINK ($8.5 million)
- 2.83 million SNX ($7.84 million)
- 12.59 thousand BNB ($ 3 million)
- 4.45 million 1INCH ($2.26 million)
- 8.53 million ZRX ($1.9 million)
- 439k FTT ($713k)
- 186.14K BONUS ($235,000)
In addition, Celsius transferred 186,149 BONE tokens worth approximately $235,000 to the OKEx exchange. FalconX played a role in the altcoin transfer process and these were deposited with Binance for later sale. Chainlink (LINK), Celsius’ largest altcoin holding, is expected to face the most significant selling pressure as part of the liquidation process. At the moment, LINK was trading at $6.68. This represented a drop of over 2%.
Celsius events: What happened?
The decision to sell the altcoin holdings comes after Celsius filed for bankruptcy protection in July 2022 due to a lack of client funds. It led to temporary withdrawal hangers. The company received authorization from the US judge overseeing the case to liquidate approximately $170 million worth of altcoin assets into Bitcoin and Ethereum, effective July 1. Celsius’ plans to liquidate, however, come amid legal troubles faced by former CEO Alex Mashinsky. The Department of Justice (DOJ) arrested Mashinsky on charges of securities fraud, commodity fraud and wire fraud. These accusations exacerbate the difficulties Celsius faced during its bankruptcy proceedings.
The conversion of altcoin assets to Bitcoin and Ethereum marks an important step for Celsius as it seeks to meet its financial obligations and achieve some recovery for its creditors. Selling of altcoin assets will likely continue as Celsius aims to transform its remaining assets and stabilize its financial situation. Celsius’ bankruptcy case, coupled with the legal problems of its former CEO, highlights the complexities and challenges faced by cryptocurrency companies operating in a rapidly evolving regulatory environment. As the industry continues to mature, compliance and transparency will play a crucial role in ensuring the stability and reliability of crypto-related businesses.
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