Just In: Celsius Withdraws stETH Collateral To A Different Wallet, If Bankrupt Customers Could Lose All Funds
Celsius is actively repaying its Aave loans, and it has trimmed its outstanding loans, which as of date stand at $50 million. The beleaguered crypto lender has also withdrawn stETH worth $416 Million from the Aave address. Celsius, in all probability, is trying to pay back its Compound loan and additional token liquidations this week. However, despite all the efforts, the sword of bankruptcy is still dangling on the crypto lender.
The distressed crypto lender had employed the law firm Kirkland & Ellis LLP to restructure its outstanding loans. The rate of loan repayment has surged, and the besieged crypto lender could still face the unpleasant possibility of the bankruptcy filing.
Celsius Actively Repays its Aave and Compound Loans
The crypto lender had an outstanding of $71 million from Aave, and it withdrew 63.50 million USDC from FTX to repay the loan. The outstanding Aave loan is USDC worth $8.42 million and REN worth $80,000. It must repay the loan in total today and is therefore hard-pressed.
The ailing crypto lender is one of the biggest debtors of Aave, but it has also borrowed from other entities. It has an outstanding Compound debt of $50 million in DAI, and an impressive $3.20 million fUSDC loans from Notional Finance which have to be repaid by September 25.
The crypto lender has just withdrawn 400,000 Staked Ethereum (stETH) amounting to $416 million after repaying the USDC debt on the Aave wallet address. Despite the withdrawal, Celsius will not be able to accrue many benefits because the lack of stETH liquidity could prevent Celsius to dump all stETH tokens. Aave address now presently s left with only $10.92 million stETH.
Celsius Loan Repayments – The Road To Bankruptcy?
Celsius has till July 7 erased its outstanding Maker loan and paid a whopping $220 million in just a week. his was followed by dumping almost $500 million worth of wBTC to FTX. ith its loans wiped clean, the firm has moved its stETH collateral to a different wallet. n other words, if Celsius becomes bankrupt, customers could lose all funds.