The company that was on the verge of losing everything is trying to cover as many debts as possible
Crypto Lender Celsius 67,000 . has moved Ethereum As for the wallet that was previously used to send funds to centralized exchanges, which were then sold on the market. Prior to the “wallet sell” transaction, Celsius moved 30,000 and 37,000 ETH from the Ave and Compound platforms, respectively.
Withdrawals from Av and Compound were the first operations in three weeks by the company to reduce collateral in positions held on the platform. Before that, the lender paid off $50 million in loans for his Away status, bringing his health factor to 2.77.
Celsius moved 67k ether ($72m) to the wallet they usually send the tokens to exchange before dumping.
They withdrew 30k Ether from Ave, 37k Ether from Compound. For the first time in 3 weeks they have reduced the collateral on these positions. https://t.co/rCy17CUK5G pic.twitter.com/qjZC12qqif— DeFiyst (@DeFiyst) 4 July 2022
Unfortunately, withdrawals made by Celsius may be aimed at getting those funds into the spot crypto market, which creates direct pressure on the asset being dumped by the seller. With unwanted volatility in the market, large sellers and buyers use OTC deals and open or close their relatively large positions without worrying about liquidity and volatility in the spot market.
Historically, the company almost never used the OTC market to realize its wealth and almost immediately relinquished its stake in the spot market, sometimes without even using the services of market makers.
Looking for ways to save Celsius
Following the crypto market crash and the company’s inability to cover its debts, Celsius began looking for ways to save the company, including by “pursuing strategic transactions” and “restructuring its liabilities.”
Reportedly, the company had loans given to counterparties that they had recalled to pay off their overcollateralized debts. Fortunately, all factors suggest that the company is actually trying to recover a portion of its funds and close as many debts as possible.