After a U.S. bankruptcy judge approved the transaction late last month, bankrupt crypto lender Celsius Network deposited a total of $59.4 million in cryptocurrencies to institutional crypto exchange FalconX early Monday, likely to trade them for bitcoin (BTC) and ether (ETH).
Due to deteriorating liquidity, the manoeuvre could put considerable downward pressure on the coins’ pricing, crypto analytics firm Kaiko said in a study last week.
According to Arkham Intelligence blockchain data, a Celsius-controlled crypto wallet sent $13.6 million in Polygon’s MATIC, $10.7 million in Chainlink’s LINK, and $7.3 million in AAVE to a FalconX deposit account.
On Monday, the corporation transferred another $8.5 million in LINK, $7.8 million in Synthetix’s SNX, and $3 million in Binance’s BNB coin. The company also sent over a million dollars worth of ZRX, 1INCH, and Tether’s gold-pegged stablecoin XAUT.
The steps followed a June 30 ruling by a U.S. bankruptcy judge to allow the bankrupt lender to convert its $170 million cache of lesser tokens to the two largest cryptocurrencies by market cap beginning this month. Celsius declared bankruptcy last summer after ceasing withdrawals. The DOJ arraigned its former CEO, Alex Mashinsky, on fraud charges on Thursday.
Celsius recently transferred $64 million in tokens from custody wallets to its over-the-counter deposit wallet, hinting at prospective token sales.