Celsius has paid more than $800 million in debt to DeFi applications
Celsius Network, a troubled crypto lender, has closed all its debt to decentralized credit applications.
On Wednesday, the firm repaid almost $50 million of its debt to the Compound credit protocol through two transactions, thereby removing the last part of its remaining debt on the network.
According to records in the chain of wallets linked to Celsius, since June 10, the firm has paid more than $ 800 million in debt on Aave, MakerDAO and Compound.
Over the past month, Celsius has been winding down its positions in order to recover large amounts of collateral placed on credit applications.
Last week, the firm paid off all its debt to MakerDAO and withdrew $440 million in Bitcoins. Later, the crypto lender also returned $124 million in Wrapped Bitcoin and $417 million in Ethereum for Aave. Today, Celsius has withdrawn another $200 million in Bitcoins for Compound.
Data on the network shows that Celsius periodically transferred significant amounts of its collateral assets to centralized exchanges in order, most likely, to sell them and repay its debt obligations.
Recall that Celsius is struggling with insolvency caused by a sharp drop in prices for cryptocurrency assets. On June 12, he froze withdrawals and transfers in his centralized credit service.
About the situation around Celsius
Celsius Network, a crypto lender that froze assets last month, used customer funds to manipulate the price of its own token and lost hundreds of millions of dollars due to the fact that it could not hedge risks, a former financial manager of the company said in a lawsuit.
The Celsius cryptocurrency lender is a pyramid scheme or Ponzi scheme that used customer funds to manipulate token prices, a former employee of the company said in the lawsuit.
As always, investors should beware of any opportunity that seems too good to be true.
Cryptocurrencies are a new and often unstable type of investment product. At the best of times, cryptocurrencies tended to be very speculative and risky investments. Significant fluctuations in value are possible due to general market conditions, market manipulation and the nature of the tokens themselves. However, since the beginning of 2022, and especially since May 2022, the value of most types of cryptocurrencies has fallen sharply. Coins or tokens stored as deposits in the Celsius Network financial company were no exception.
Author: Dan, analyst Сoin-signal.com Club Crypto News
https://coin-signal.com/cryptonews/celsius-has-paid-more-than-800-million-in-debt-to-defi-applications/
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