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Empty incoming? Celsius repays maker loan and transfers $440 million in wrapped bitcoin to FTX

The temperature seems to have changed for the troubled crypto lender Celsius.

After keeping customer withdrawals, transfers and swaps frozen for almost a month—a Celsius move said it took “stabilize liquidityin the face of “extreme market conditions” – the company has now fully repaid its $440 million loan.

Early Thursday morning, all in one dealCelsius used DAI stablecoins to pay off the remaining balance of $41 million on Sound Maker Vault, where borrowers lock up collateral and can generate DAI stablecoins equal to half the value of their collateral on the Maker DeFi protocol. Celsius was on the verge of having its collateral liquidated three times in May and June, when the value of its collateral nearly fell below the critical 150% mark, but has since made regular payments.

After repaying the rest this morning, he then withdrew the $440 million of Wrapped Bitcoin (WBTC), a tokenized version of Bitcoin that can be used on the Ethereum network, which he had deposited as collateral.

Hours later, Crypto Twitter users and the r/cryptocurrency community on Reddit noted that Celsius had moved the recently recovered collateral in a wallet on the FTX crypto exchange. The company now has $531 million worth of WBTC on the exchange.

At first glance, the loan repayment seems like good news for the beleaguered lender. But now there is half a billion WBTC sitting on an exchange that will likely be sold off in order to help Celsius meet its obligations to its customers. Selling such an amount could create some serious turbulence in the markets, although at the time of writing, Bitcoin, and WBTC with it, is up over 6% in the past 24 hours.

The loan originated on October 7, 2021, when Celsius deposited 999 WBTC ($53 million at the time) into the vault. As of January 24, Celsius had a total of 20,219 WBTC (worth around $733 million at the time) locked away in the vault.

At its peak in December, Celsius was expected to $472 million on his Maker loan.

From February to May, Celsius began repaying its loan and withdrawing parts of its collateral in blocks of 1,000 or 2,500 WBTC. But on May 12, when Terra stopped its blockchain for the first time, Celsius added approximately $65 million of WBTC to prevent its loan from being liquidated.

Then, on June 12, the same day Celsius announced it would freeze withdrawals, the company added another $192 million worth of WBTC. At the time, WBTC was trading at $26,754.94, according to CoinMarketCap.

Since mid-June, Celsius has been steadily making repayments on its loan until today’s repayment.

For his part, Celsius has been silent on his Twitter account and his blog for a week. In its latest announcement on June 30, the company said it was still working to stabilize liquidity.

“We continue to take significant steps to preserve and protect assets and explore the options available to us,” Celsius wrote in the post. blog post. “These options include pursuing strategic transactions as well as a restructuring of our liabilities, among others.”

Celsius did not immediately respond to a request for comment from Decrypt.

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