The move comes just after the crypto lender reclaimed 22,000 WBTC as collateral of its loan on DeFi lending protocol Maker, blockchain data shows.Read MoreFeedzy
Blockchain transaction data shared by blockchain data firm Nansen shows that a wallet linked to Celsius sent 24,463 WBTC to the FTX in various steps.
Earlier Thursday, CoinDesk reported that Celsius reclaimed 21,963 wrapped bitcoin (WBTC) tokens after it fully paid off its debt to Maker. Celsius already redeemed a 2,000 WBTC installment of the collateral on Tuesday.
Fundstrat analyst Walter Teng said that “Celsius’ de-leveraging activity on-chain will add sell-side pressure to assets that have been used as collateral,” including WBTC, which has been the firm’s largest holding pledged against its DeFi loans.
The move suggests that Celsius might sell the assets for more liquid assets, although market data on the exchange did not indicate that it had already happened. At press time, WBTC traded closely in tandem with bitcoin, changing hands at $21,600, up 6% in the last 24 hours.
Celsius halted withdrawals and all user transfers starting in June, citing “extreme market conditions” that led to fears that the lender might face insolvency. The firm also hired restructuring advisers, while regulators also started investigations into the crypto lender’s operation in several U.S. states.
Last week, the company said in a statement that it was exploring options to “preserve and protect assets” in consultation with experts, which can include “pursuing strategic transactions” and “restructuring its liabilities,” as reported.
Read more: How Crypto Lender Celsius Overheated
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