Celsius Network transfers over $1 billion in Ethereum to exchanges, possibly for creditor repayments

Celsius Network, a crypto lender, has sparked market activity by transferring more than $1 billion in Ethereum (ETH) to exchanges such as Coinbase, Paxos, and FalconX.

This transaction, totaling 459,561 ETH, continues Celsius’ trend of large fund transfers, raising concerns about its intentions.

Celsius sent 300,000 ETH to Coinbase Prime, with additional funds going to Paxos and FalconX. Spot on Chain, a crypto analysis firm, revealed that Celsius has been on a fund-moving spree, transferring a total of 740,321 ETH (around $1.69 billion) to exchanges since November 2023.

Despite these substantial transfers, Celsius still has 62,468 ETH worth approximately $139 million. Experts believe the transactions were over-the-counter (OTC), noting that 12 newly created wallets withdrew 296,835 ETH (equivalent to $660 million) from Coinbase shortly after Celsius deposited ETH on centralized exchanges.

While the exact purpose of these transfers is unknown, speculation suggests that they may be linked to creditor repayments.

Celsius is expected to begin repaying creditors in mid-February, and these transactions could be part of that preparation.

Coinbase is viewed as a potential payment distribution platform, particularly in 89 countries other than the United States.

Creditors claim they were notified via various social media channels to prepare for impending repayments. The crypto community is keeping a close eye on Celsius’ moves as it navigates this complex financial landscape.