Celsius Network, a bankrupt cryptocurrency lending platform, has executed significant transfers totaling around $1 billion in Ethereum (ETH) to Coinbase and Paxos.
These transfers are seen as part of Celsius’ efforts to prepare for meeting creditor repayment obligations. The transfers, conducted over 13 transactions, included test transactions before moving 45,000 ETH ($99.49 million) to Coinbase and substantial amounts to both Coinbase and Paxos, totaling over $981 million.
Recent transfers followed a $125 million ETH movement two weeks earlier, with the company retaining 106,039 ETH ($236 million).
Celsius’ reorganization plan, approved by the New York Bankruptcy Court and the SEC, involves focusing on mining and registering shares of Mining NewCo, owned by customers. Repayments are expected to begin by January 31, 2024.
In June 2022, Celsius temporarily halted withdrawals for all platform users holding assets. During the ensuing bankruptcy proceedings, the court approved distinct repayment procedures for different user categories.
Judge Martin Glenn determined that funds in non-interest-bearing custody accounts rightfully belonged to the account holders, specifically those deposits not commingled with other assets and not transferred from an interest-bearing account within 100 days before the platform’s suspension.
Withdrawals for this group opened in March of the following year, and the remaining Custody account assets were released in November, subject to the terms of Celsius’ settlement agreement.
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