Celsius unlocks another $195 million in collateral after paying off debt to Compound
Cryptocurrency lender Celsius Network, which had to stop withdrawing on June 13 due to liquidity issues, has over $ 50 million in DAI debt on the Decentralized Finance (DeFi) protocol Compound on July 13. Completely paid off. On-chain data..
The repayment was made in two transactions. In the first transaction, Celsius transferred $ 29.3 million worth of DAI to Compound, and in the second transaction added another $ 20.8 million worth of DAI.
With the repayment, Celsius will be able to collect a total of 10,000 wrapped Bitcoins (WBTC) locked as collateral, worth about $ 195.7 million at current prices.
Celsius still borrows $ 72,300 worth of REN tokens from Aave. data From Zapper.
Over the past few weeks, Celsius has gradually repaid debt to various DeFi protocols. On July 7, Celsius paid off its loan to the Maker protocol and released more than $ 400 million in collateral.
However, private investor and cryptocurrency influential Mike Alfred says Mr. Seth is using his clients’ assets to repay loans and bankruptcy filings are expected to continue shortly.
At the current pace, Celsius will pay off all Defi loans by the end of this week, given that it can effectively leverage its entire asset base (of customer assets). Bankruptcy filings should be filed shortly thereafter.
— Mike Alfred (@mikealfred) July 11, 2022
Vermont Treasury Regulatory Authority (DFR) Said On July 12, Celsius believes he was “bankrupt.” The DFR added that Celsius’ assets and investments are “probably not enough to cover their unpaid obligations.”
As of May 2022, Celsius has approximately $ 12 billion in assets under management and approximately 2 million clients. The company is tightly closed about its recovery plans. June 30, Celsius Blog locationIt is “working as quickly as possible to stabilize liquidity and operations.”
