Celsius Network Minimizes Debts Amid Bankruptcy Battle

Since last week’s wave of bitcoin loan repayments, the troubled cryptocurrency lender Celsius Network which has suspended customer withdrawals due to liquidity issues has paid off $113 million on its Aave and Compound loans over six transactions.

Celsius Repaid More Debts

On Monday, cryptocurrency lender Celsius Network paid back further loans as the firm battles insolvency. According to tracker Nansen and Etherscan, Celsius repaid loan site Aave for around $78.1 million worth of USDC stablecoin during the course of the previous day. Additionally, it handed out DAI stablecoins worth $35 million on the Compound platform.

As per data, last week, Celsius-owned digital wallets used a similar treasury-management strategy and repaid loans to multiple platforms including Maker, and released more than $450 million in collateral.

Celsius still owes Aave and Compound around $120 million in debt. On these decentralized lending platforms, if the collateral is not repaid, it may be automatically liquidated under certain situations. Celsius used to assure holders of digital currency more than 18 percent in interest on their investments; in return, Celsius lent out those coins.

In June, Celsius suspended all transactions, trading, and other operations due to difficult market conditions. Users are still waiting for word on when they might be able to obtain their funds. Voyager Digital Ltd. and Three Arrows Capital, two other cryptocurrency companies, just declared bankruptcy. At the time of writing Celsius was traded at $0.7546 (Source- CMC (NS:CMC))

According to CMC Celsius (CEL), will see some recovery in the future, at the time of writing and CEL was trading at $0.7546 with a trading volume of $9,443,846. It is down 5.50% in the last 24 hours and has a market cap of $179,783,026.