Celsius Sends $72 Million Worh of ETH to “Dump” Wallet, Here’s What to Expect

Arman Shirinyan

Company that was on brink of losing everything is trying to cover as many loans as possible

The crypto lender Celsius has moved 67,000 Ethereum to the wallet that was previously used for sending funds to centralized exchanges, which had then been sold on the market. Prior to the transaction to “sell wallets,” Celsius moved 30,000 and 37,000 ETH from Aave and Compound platforms, respectively.

Withdrawals from Aave and Compound were the first operations the company made in three weeks to reduce the collateral in positions placed on platforms. Previously, the lender paid down $50 million in debt for their Aave position, increasing its health factor to 2.77.

Unfortunately, the withdrawal made by Celsius could be aimed at realizing those funds on a spot crypto market, which creates direct pressure on assets that the seller is dumping. With undesired volatility on the market, large sellers and buyers use OTC deals and open or close their relatively large positions without worrying about liquidity and volatility on the spot market.

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Historically, the company almost never used the OTC market to realize their funds and almost immediately dumped their holdings on the spot market, sometimes even without using the services of market makers.

Celsius is looking for ways to remain afloat

Following the crash on the cryptocurrency market and the company’s inability to cover its loans, Celsius started looking for ways to save the company, including “pursuing strategic transactions” and “restructuring its liabilities.”

Reportedly, the company had loans given out to counterparties that they have most likely recalled for paying down their overcollateralized loans. Luckily, all factors show that the company is actually trying to recover a portion of their funds and close as many loans as possible.

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