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Celsius Network Signals Creditor Repayments as it Transfers $125 Million in ETH to Exchanges

In a move indicating its commitment to creditor repayments, embattled crypto lender Celsius Network has transferred over $125 million in Ethereum to various cryptocurrency exchanges between January 8 and 12. Notably, $95.5 million was sent to Coinbase, while FalconX received $29.7 million. The company, which still holds significant assets, including over 580,000 ETH and 9,799 BTC, valued at approximately $1.47 billion and $417.67 million, respectively, recently unstaked 206,300 ETH worth $470 million for restructuring expenses and creditor repayments.

Celsius Network, which declared bankruptcy in July 2022 amid a liquidity crisis and a broader market downturn, has been actively working on a settlement plan. The plan involves distributing Bitcoin (BTC) and Ethereum (ETH) to creditors, though a specific date for the commencement of these distributions has not been disclosed. Creditors, who have been waiting for over 18 months for fund returns, have the opportunity to withdraw 72.5% of their crypto holdings until February 28.

Market observers have expressed mixed reactions to Celsius’s recent moves. While some are concerned about potential negative impacts on Ethereum’s market value, others view it as a positive step for ETH’s long-term prospects amid the lender’s restructuring efforts.

In a related development, entities associated with Sam Bankman-Fried’s now-defunct crypto empire, FTX and Alameda Research, have also been transferring funds to centralized exchanges, leading to speculations about sales to compensate affected customers. These entities still hold approximately $1.2 billion in EVM assets.

Additionally, CryptoRank, a crypto analytics platform, highlighted that seven crypto projects are set to unlock a total of $407.7 million worth of digital assets soon. BitDAO leads this list with the impending release of 172.98 million tokens, valued at $147.74 million. Other notable tokens include SEI, UNI, ACE, LDO, AXS, and APE, contributing to the potential impact on the crypto market in the coming week.

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