Following the repayment plan of the Crypto lender, Celsius has relocated over $125 million worth of Ether to various crypto exchanges. The lender noted that such liberated Ether would be used towards meeting the cost of restructuring and preparing for settling creditors’ debt.
Celsius does not specify when creditors can expect to receive their funds, but its behaviour indicates that it is moving ahead with repaying debts.
Celsius filed for bankruptcy in July 2022, and its creditors have remained unpaid since then. It began rehabilitating its loans, as well as raising more capital to pay off the creditors. The latest move of Ether to the companies with exchanges is good news for Celsius’s creditors as it indicates that the company will reclaim its debts.
Likewise, FTX – a bankrupt crypto exchange moved $23 million worth of assets into exchanges on January 14. FTX and Alameda Research have been making efforts to recover funds for creditor reimbursement, with a reported recovery amount of about $7 billion.
However, the current plan indicates that repayments are most likely to start sometime in 2024. It can be inferred from the activities carried out by Celsius and FTX that bankrupt crypto firms are making progress toward settling their debts to creditors.
This is a good development for the crypto market because it indicates that firms take measures to safeguard customers’ investments.
