Celsius transfers $124 million in wrapped bitcoin from Aave


Celsius Network, a centralized lending firm undergoing a major insolvency crisis, continues to repay and reclaim large amounts of collateral from DeFi protocols.

At around 9:14 a.m. ET, Celsius withdrew 6,083 wrapped bitcoin (worth approximately $124 million) from Aave, a popular lending platform it used to borrow assets and earn a yield.

After pulling out its bitcoin from Aave, Celsius transferred these funds to an Ethereum address that is known to regularly interact with centralized exchanges like FTX. 

Besides transferring out wrapped Bitcoin today, Celsius also repaid $60 million in USDC stablecoin to Aave in three transactions on Monday, thereby reducing its overall debt on the platform. Later, a fourth transaction raised that total amount to $78 million.

Facing a financial fallout caused by a sharp drop in crypto markets, Celsius has been winding down its DeFi positions on protocols like Compound, Aave, and Maker. Last week, the embattled cryptocurrency lender repaid all of its debt on MakerDAO before withdrawing $440 million in wrapped bitcoin.

According to on-chain data gathered from its wallets, Celsius still owes $72 million in USDC to Aave and $50 million in DAI to Compound. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is a reporter who has covered the ins and outs of the tech industry for more than half a decade. Prior to joining The Block, Vishal worked for media firms like Crypto Briefing, IDG ComputerWorld and CIO.com.



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