Bankrupt cryptocurrency lending platform Celsius has transferred substantial amounts of Ethereum to centralized exchanges, raising expectations of repaying creditors with liquid crypto assets starting mid-February. On January 26, several large Ethereum transactions were made from Celsius Network wallets to deposit wallets designated for Paxos and Coinbase Prime.
The largest transaction involved moving 443,961 Ethereum, worth $984 million, from Celsius to another wallet under network control, likely in preparation for a transfer. According to blockchain data analysis firm Arkham, 13 transactions followed within an hour, moving significant amounts to Coinbase and Paxos wallets. Spotonchain reported that the majority of the 297,454 Ethereum sent to Coinbase was likely distributed to 12 new wallets as part of an OTC deal.
Two days earlier, on January 24, Celsius had transferred 575,081 Ethereum using Celsius Network-labeled addresses. The platform has moved a total of 757,626 Ethereum to FalconX, Coinbase, OKX, and Paxos since November 13, 2023, and currently holds 62,469 Ethereum, valued at $138.8 million.
While the exact reasons for the recent Ethereum transactions remain unclear, an updated Celsius asset distribution process indicates that a limited number of institutional accounts may receive cryptocurrency through Coinbase. Non-institutional creditors in the United States will receive distributions via PayPal, while those outside the U.S. will be serviced by Coinbase.
A group of Celsius creditors, known as the “Celsius NewCo Community,” expects the crypto asset distribution to begin in mid-February, with the distribution window remaining open for a year. Meanwhile, a Celsius user reported successfully withdrawing all Ethereum assets from Celsius, and Arkham Intelligence data shows additional transfers to Coinbase and FalconX, suggesting asset reallocation in preparation for potential asset distribution.