Celsius transferred $320 million worth of crypto to FTX shortly after halting the withdrawals on their platform and there was no reason for the transfer so let’s read more today in our latest cryptocurrency news.
The controversial events around Celsius Network continue unfolding as the team unstaked millions of dollars in crypto from Aave and moved them to FTX but so far, the proejct hasn’t provided a reason why. The transaction started during the weekend with the first batch seeing 3500 WBTC and 50,000 ETH which continued to increase in the next few hours. The on-chain data shows that Celsius sent over 100,000 ETH to FTX in the past few days and 9500 WBTC as well but the staking and lending platform transferred other tokens as well like MATIC, UNI, FTT, and more. Overall, the total amount sent is around $320 million.
I hope retail can get out. I’ve been hearing about accounts locked. That would be similar to LUNA. We shall see.
— Mike DAOdas (🏌️♂️, ⛳️) (@mdudas) June 11, 2022
Celsius transferred funds to FTX but there’s still no official comment on the transfers. The only communication that came from the team was the announcement halting all user services such as withdrawals. This came after the company transferred the funds to FTX and a few hours following a comment made by the CEO Alex Mashinsky. While Celsius is yet to shed light on the FTX transfers, the community speculates on Twitter that they came because of liquidity issues. According to a user, the company faced these problems for the past few months as other hacks harmed its reserves and lost funds in LUNA and Anchor. The user estimated that the Celsius customers withdrew 50,000 ETH weekly while determining the platform is able to work properly for five weeks before default.
Sixth, smart money whales move first and withdraw their large funds. Once a whale withdraws from Celsius and sells their stETH, the death spiral will begin.
450,000 stETH has a 45% slippage while trading to ETH on @CurveFinance
Not saying that it will all be swapped in 1 go pic.twitter.com/KG3bPYI2u3
— otteroooo (@otteroooo) June 8, 2022
As earlier reported, The company’s CEL token reacted quickly and dropped 70% in one hour from the previous $0.49 and then hit $0.15. The crypto investors on Twitter made a comparison with the recent Terra collapse and the infamous scheme Bitconnect. The rest of the market didn’t have a good day as well when Celsius shared the news but it was nothing compared to the CEL dramatic drop. Celsius drops 70% and BTC was down by 9% at the time of writing. ETH was also down by 9% and Cardano by 11%.
The lending paltform Nexo proposes a bid to acquire certain remaining qualifying assets of the Celsius Network. The digital asset manager Nexo responded to the news of Celsius pausing withdrawals by tabling the proposal for a buyout of the company’s liquid assets.
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