The Celsius network has repaid the debt of 63.5 million USD to the DeFi protocol

Posted 13 July, 2022

The cryptoplatform of the Celsius network has repaid the debt to the Aave Defi protocol in the amount of 63.5 million USD, according to PeckShield, a cybersecurity company. According to analysts, before paying a loan to a wallet in Celsius from the cryptocurrency exchange, 63.5 million USDC from the FTX cryptocurrency exchange.

The Celsius network is a centralized platform that offered a yield of up to 17% on deposits in various cryptocurrencies, including ETH, BTC and many stablecoins. The company faced financial difficulties and in mid-June suspended all withdrawals, swaps and transfers between accounts.

Due to the fall in the value of cryptocurrencies, Celsius credit positions opened on several DeFi protocols were threatened with liquidation. This could happen in the case of an automatic sale of collateral assets caused by non-repayment of the loan on time. By paying off debts in installments, the company prevented the loss of pledged assets.

tokenized forms of cryptocurrencies, the Celsius Network used wrapped bitcoins (WBTC) and Ethereum (stETH) — tokenized forms of cryptocurrencies as collateral. After paying off the debt to a large Defi protocol, Aave Celsius received back a deposit of more than 415 million USD: 400 thousand stETH were received to the company's account.

Last week, the Celsius Network hired lawyers from Kirkland & Ellis LLP to consider restructuring options, including a possible bankruptcy filing. "Celsius", "Three arrows", "Voyager".

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