The troubled crypto lending platform Celsius has paid off its last major outstanding debt.
According to this morning Data from Etherscan, Celsius repaid $ 50 million in DAI (MakerDAO’s dollar peg stablecoin) to the decentralized finance (DeFi) lending protocol Compound.In return, Celsius received Loan collateral: Wrapped Bitcoin (WBTC) worth about $ 200 million.
The loan was oversecured. In short, Celsius initially sent complex digital assets beyond loans to cover potential losses. At the time of this writing, the 10,000 WBTCs returned to Celsius were worth about $ 198 million. (WBTC is a version of Bitcoin Changed to work with Ethereum Blockchain. )
Today’s repayment means the liquidation of Celsius’ last major debt to decentralized lenders.Last month, the company received $ 440 million in collateral. After paying off the loan to the DeFi protocol maker..Just yesterday, Celsius similarities recovered about $ 415 million After significantly reducing debt with Aave..
Regaining so many collaterals is not a small problem for Celsius.The company is dangerously close to losing these deposits due to liquidation of collateral At some point in May and JuneWhen crypto prices plummeted, there was a risk of falling below 150% of the value of the loan they were supposed to cover.
It is still unclear whether this inflow of over $ 1 billion in collected debt collateral will adequately cover the obligations of Celsius’ customers, along with the company’s additional liquidity.
Just a month ago, a lending platform that offered users high-yielding loans up to 18% on cryptocurrency deposits Paused withdrawals, swaps, and transfers for all customers, Quote the issue of liquidity. I haven’t unfrozen yet.
The company was one of the first cryptocurrency lending platforms to freeze accounts after the market began to plunge in early May, and other platforms since then.Babel Finance, CoinFLEXWhen Voyager Among them — followed.
Celsius CEO Alex Mashinsky has been silent on Twitter since he reposted the company at the end of last month. Blog post “We are working as quickly as possible to stabilize liquidity and operations,” the Celsius team said. This post does not provide a timeline for when a customer account will be unfrozen.
on sunday, Report revealed The company has replaced a lawyer hired just a few weeks ago to oversee the company’s restructuring process.Just yesterday, Vermont’s financial regulator Celsius “Bankruptcy” was displayed He argued that previous statements made by representatives of Machine Ski and other companies about the security of customer funds were “not true.”Vermont Regulators, along with at least five other state regulators Currently investigating Celsius About the decision to freeze the customer account.
Celsius did not respond to multiple requests for comment on this story.
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