Crypto lender Celsius has recently moved over $125 million worth of Ether to various crypto exchanges as part of its strategy to start repaying its creditors.
According to data from Arkham Intelligence, between January 8 and January 12, Celsius transferred $95.5 million to Coinbase, while $29.7 million was moved to FalconX.
Despite these transfers, Celsius still holds a substantial amount of Ethereum, with over 550,000 ETH valued at a staggering $1.36 billion as of the latest data available.
On January 5, Celsius initiated the unstaking of a massive 206,300 ETH, worth $407 million at the time.
The lender explained that this newly-liberated Ether would be used to cover costs related to its ongoing restructuring process and to prepare for the repayment of creditors.
While Celsius has expressed its intention to distribute Bitcoin and ETH to creditors in its recovery plan, it has not provided a specific timeline for when creditors can expect to receive their funds.
Celsius creditors have endured a long wait of more than 18 months to access their funds, as the platform declared bankruptcy in July 2022.
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In a similar move, FTX, a bankrupt crypto exchange, and its defunct trading arm, Alameda Research, transferred $28 million in crypto assets to exchanges on January 14, as per data from blockchain analytics platform Spot On Chain.
This transfer included $18.7 million in Wrapped Bitcoin, $8 million in Ether, and $1 million in Pendle (PENDLE) to Coinbase and Binance.
Following their bankruptcy declaration in November 2022, FTX and Alameda Research have been actively working to raise funds for creditor repayment.
Administrators of FTX have successfully reclaimed approximately $7 billion in assets, including a substantial $3.4 billion in cryptocurrency.
Market sentiment has been favorable towards FTX creditor claims, with some assets trading as high as $0.50 on the dollar as of October 2023.
While there is no precise date for when FTX customers can expect to be reimbursed, the current plan outlines that repayments are likely to commence at some point in 2024.
This suggests that creditors may have a reasonable chance of recovering their investments.
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