Celsius makes several refunds and withdrawals: Sources

Celsius Network has repaid partial debt to the decentralized financial and lending platforms Aave and Compound, respectively, as it continues to tackle the potential insolvency problem.

According to tracker Etherscan, the cryptocurrency lender USDC repaid stablecoin worth $ 78.1 million to Aave and stablecoin DAI worth $ 35 million on the Compound platform.

The Block reported that Celsius also extracted 6,083 wrapped bitcoin (worth about $ 124 million) from Aave and transferred them to an Ethereum address known for trading with centralized exchanges on a regular basis.

The Block also added that the fund transfer to Aave was made in four transactions. It further reported that the cryptocurrency lender cleared its debt last week on MakerDAO before withdrawing $ 440 million in wrapped bitcoin.

The crypto company has begun removing debt to free up security in decentralized financing applications.

However, the troubled crypto company still owes $ 72 million in USDC to Aave and $ 50 million in DAI to Compound, according to chain data collected from the wallet.

While data from Nansen and Etherscan data showed that digital wallets belonging to Celsius have repaid more than 300 million dollars in debt to various platforms since 1 July 2020.

Celsius has frozen withdrawals since the beginning of the last market downturn in June, while other crypto companies, Voyager Digital Ltd. and Three Arrows Capital, recently filed for bankruptcy.

Celsius had positioned itself in the market by promising more than 18% in interest to people’s holdings that gave it its digital coins. The cryptocurrency lender, for its part, lent these coins, Bloomberg reported.

In addition to removing debt, the crypto lender has also started the restructuring process.

Celsius has hired new lawyers to advise the troubled cryptocurrency lender on restructuring, according to a report by the Wall Street Journal (WSJ).

The much-needed restructuring plan has come as it seeks to escape the recent turmoil in the crypto markets, the WSJ said, citing people familiar with the matter.

According to the WSJ report, Kirkland & Ellis LLP attorneys have been called on board to advise Celsius on alternatives, including a bankruptcy notice.

The lawyers have replaced the company’s former leading restructuring adviser, Akin Gump Strauss Hauer & Feld LLP.

Since the company’s stagnation due to the market dive, it has been in an unstable liquidity position. As part of the recovery effort, Celsius has also appointed Citigroup to provide advice on potential financing options.

WSJ reported that Celsius is also reorganizing the board as they appointed two new directors last week.

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