Bankrupt cryptocurrency lending platform Celsius Network has seemingly deposited 13,000 Ether ($ETH) worth over $30 million on Nasdaq-listed cryptocurrency trading platform Coinbase and an additional 2,200 ETH worth $5.13 million on FalconX.
According to on-chain analysis service Lookonchain, two staking wallets associated with the lending platform currently still hold 557,081 ETH worth roughly $1.3 billion that could still end up being sold on the market.
Notably, Lookonchain had previous revealed that Celsius largely converted its altcoin assets into Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization. The firm also seemingly moved a large amount of tokens to an Ethereum wallet addresses starting with “0x4131.”
The lending firm filed for bankruptcy in July 2022, with its native token CEL losing nearly all of its value at the time while it was unable to meet investor withdrawals.
Last year Alex Mashinsky, its former CEO, started faced a slew of federal charges, stemming from multiple U.S. agencies including the Department of Justice (DOJ), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC).
Federal prosecutors have levelled fraud charges against Mashinsky, accusing him and others, including Celsius’s Chief Revenue Officer Roni Cohen-Pavon, of executing “a scheme to inflate the price of Celsius’s proprietary token, CEL.”
Celius got a plan approved by a judge in late 2023 that involves creating a new company, called “NewCo,” that will focus on mining and staking cryptocurrencies to pay back its creditors.
NewCo will start with a balance sheet of $1.25 billion, of which $450 million will be in liquid crypto assets. Celsius also announced that it is unstaking its Ethereum, which has been earning income for its estate since mid-2022.
Featured image via Pixabay.