Celsius Network Repays $78M in USDC to Aave, Withdraws 6,083 WBTC of Collateral

UTC by Bhushan Akolkar · 2 min read
Celsius Network Repays $78M in USDC to Aave, Withdraws 6,083 WBTC of Collateral
Photo: Web Summit / Flickr

As per reports, Celsius has repaid more than $300 million of debt since the beginning of July unlocking a major part of its collateral. It still has $140 million in loans left to be paid to Aave and Compound.

Troubled cryptocurrency lender Celsius has been flexing its muscles to pay all of its outstanding loans in time and avoid the chance of bankruptcy. On Monday, July 11, Celsius Network repaid a total of $113 million in loans. As per data from Etherescan, Celsius repaid $78 million in USDC stablecoin to DeFi lending platform Aave. The repayment happened in four different transactions. In return, Celsius managed to withdraw 6,083 Wrapped Bitcoins (WBTC) from Aave.

Celsius Repaying to Aave

Later, Celsius transferred these funds to the Ethereum address which regularly interacts with centralized exchanges like the FTX. Similarly, Celsius also repaid $35 million in DAI stablecoin on the Compound platform.

Following the major liquidity crisis that it currently faces, Celsius has been winding down its positions with Aave, Compound, and Maker. After its last week of repayment to Maker, Celsius managed to unlock more than $480 million in collateral. Since July 1, Celsius has paid back more than $300 million worth of its debt on these three platforms, as per data on Nansen.

It isn’t clear from where is Celsius getting this funding to pay back its loan. The distressed lender has provided limited guidance ever since it halted withdrawals last month in June.

however, the trouble isn’t completely over for Celsius as of now. As per data on Zapper, Celsius still has $120 million in outstanding debt on Aave and Compound.

Since Celsius has most of its debt on decentralized platforms, it has to repay in time to avoid the liquidations of its collateral. It has been a really tough time for Celsius as the crypto market has turned extremely bearish following the crash in Q2 2022.

The only positive in the crypto space is the slowdown in negative news. However, the crypto market still lacks a catalyst to drive the momentum upwards.

Celsius and Its Restructuring Plans

On Sunday, July 10, Celsius hired new lawyers in order to explore new restructuring options. As per sources, Celsius hired lawyers from Kirkland & Ellis. The troubled crypto lender is looking to avoid bankruptcy to protect its retail customers’ interests.

There’s been no official commentary from Celsius since the start of July.

“We are focused and working as quickly as we can to stabilize liquidity and operations. We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues,” noted Celsius.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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