Celsius Receives BTC Worth $1.1B, Fueling Customer Repayment Rumor

A number of Bitcoin transfers into a wallet associated with bankrupt cryptocurrency lender Celsius has driven speculation amongst crypto community members. The large amount of the transfer has led some to believe that the firm may be gearing up to repay creditors soon.

Indeed, the speculations came after an X (formerly Twitter) user flagged a large BTC transfer to the said wallet. “CelsiusNetwork wallet received 25,266 bitcoins worth $1.10 billion a few minutes ago,” the user tweeted.

In response to the tweet, renowned Bitcoin maximalist and crypto investor Simon Dixon suggested the crypto firm may be preparing to repay customers. “Celsius Creditors – Bitcoin Distributions Gearing Up,” Dixon tweeted.

Last week, on-chain analytics platform Lookonchain called crypto community members’ attention to a slew of ETH transactions involving Celsius. As earlier reported, the data tracker revealed Celsius moved 459,561 ETH tokens to multiple exchanges within the last 24 hours.

In 2022, Celsius was one of the several cryptocurrency firms that went under following exposure to the TerraUSD collapse. Alex Mashinsky, the company’s former CEO, was later charged with fraud by the Justice Department and is now free on a $40 million bail.

Last year in November, a New York court approved Celsius’s plans to end its reorganization plan by early 2024. Additionally, the firm said around two-thirds of the $2 billion allotted to customers who had money on the platform would be returned to creditors under the proposal.

In December, US Bankruptcy Judge Martin Glenn in Manhattan approved the firm’s pivot to bitcoin mining. According to the judge, Celsius’s bankruptcy plans contained enough flexibility to allow it to switch to a backup plan if it hit a roadblock with the US Securities and Exchange Commission.