©Reuters
NEW YORK – Troubled crypto lender Celsius has transferred approximately $10 million from to digital asset platform FalconX, as part of its ongoing restructuring efforts. This transfer comes after the company transitioned into a creditor-owned entity focused on cryptocurrency mining and staking, with a judge-approved bankruptcy plan in place.
The transfer of 5,160 ETH, valued at $10.49 million, was reported by Etherscan on Wednesday, November 15, 2023. The transaction is believed to be an asset sale driven by the recent surge in the price of Ethereum, which has seen an increase of almost 80% since the start of the year, reaching $2,033. Earlier this year, Celsius transferred 428,000 ETH, valued at $780 million at the time, from Lido Finance to FalconX.
In the days leading up to today’s transaction, Celsius actively liquidated various assets, including stablecoins, SPELL tokens from Abracadabra DeFi, and BAT tokens from Brave browser. These assets were transferred to exchanges such as Binance and OKX. The strategic liquidation is part of Celsius’ efforts to manage its bankruptcy proceedings and restructure its business.
The company’s new direction is to transform into NewCo, a cryptocurrency mining and staking company. Under creditors’ ownership, NewCo is expected to have an estimated balance sheet of $1.25 billion. This amount includes a significant portion of liquid cryptocurrencies that could potentially be staked on Ethereum.
Celsius’ change in strategy follows a tumultuous period that began in June 2022, when market instability led the company to freeze withdrawals and file for bankruptcy shortly thereafter. At the time, Celsius reported nearly $5 billion in debt to its creditors. The recently court-approved plan promises creditors potential returns through staking returns and marks an important step in the company’s attempt to turn around and deliver value to its stakeholders.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.