Crypto Exchange Celsius Repays $142.8M in Loans to Prevent Potential Bankruptcy

Crypto Exchange Celsius Repays $142.8M in Loans to Prevent Potential Bankruptcy

Following Celsius' latest $67 million loan repayment to Compound and Aave, the exchange is gradually working its way out of debt.

According to some statistics, since the beginning of July, the famous bleeding crypto exchange Celsius (CEL) has managed to pay $142.8M in DAI loans to Maker (MKR) protocol, also called the Multi-Collateral Dai (MCD) system.

Decentralized finance (DeFi) Explorer database revealed that Celsius still has to pay $82M to Maker in order to completely clear out its debt. The company, which has already lost over $650M during its crisis, has supposedly paid off part of its debt in order to prevent complete bankruptcy.

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Following the payoff, Celsius' Bitcoin (BTC) liquidation price dropped below $5k. A few days back, the exchange is also said to have paid a combined $67M in debt to Aave and Compound.

Earlier in June, the crypto lender froze all of its withdrawals and transfers between accounts. In fact, it has been nearly 3 weeks since 1.7 million users of the platform have been unable to access their funds and bring them back home.

Despite the fact that the exchange is seeking help from a number of restructuring lawyers to get advice on its financial issues, investors still believe that the company is on the verge of becoming completely insolvent.

Even more, the New Jersey-based crypto-driven lender recently cut 23% of its workforce, citing the bear market and the current ongoing battle against its financial catastrophe. Celsius' native token CEL currently sits at $0.89, down 0.67% in the past 24 hours.

If the company essentially goes bankrupt, American-based investment bank Goldman Sachs recently noted that it would buy the remaining assets from the bleeding crypto lender for $2B.

In other news, Celsius' rival Vauld has also followed in the same footsteps and halted all of the withdrawals, deposits, and trading. The crypto lender blamed the recent events in the crypto market - the collapse of Terra's UST stablecoin and Three Arrows Capital's default on their loans.

Gyth L. - Crypto Analyst

by Gyth L. - Crypto Analyst, BitDegree