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Celsius Initiates ETH Transfers to Exchanges as FTX and Alameda Unload Assets

In an effort to address outstanding obligations to creditors, struggling cryptocurrency firms have commenced significant transfers of Ethereum (ETH) to centralized exchanges. Celsius, a beleaguered crypto lender, has recently moved more than $125 million worth of Ether to exchanges, signaling its commitment to initiating repayments.

Between January 8 and January 12, Celsius executed transfers totaling $95.5 million to Coinbase, with an additional $29.7 million directed to FalconX, according to data provided by Arkham Intelligence. Despite these transactions, Celsius still retains a substantial ETH balance of over 550,000, valued at an impressive $1.36 billion at the time of this publication.

On January 5, Celsius made a significant move by unstaking 206,300 ETH, valued at $407 million at the time. The company asserted that the newly released Ether would be allocated to cover expenses incurred during its restructuring process and to prepare for creditor repayments. While Celsius has announced plans to distribute Bitcoin (BTC) and ETH to creditors in its recovery strategy, a specific date for the commencement of these fund distributions has yet to be specified.

Celsius creditors, who have endured an 18-month wait for funds trapped on the platform since the company declared bankruptcy in July 2022, continue to monitor developments closely.

FTX and Alameda Follow Suit with $28M Crypto Transfers to Exchanges

Celsius is not the sole struggling firm engaging in the transfer of crypto assets to exchanges in recent weeks. On January 14, the bankrupt crypto exchange FTX and its defunct trading arm, Alameda Research, executed transfers totaling $28 million to exchanges, according to data from the blockchain analytics platform SpotOnChain.

These transfers included $18.7 million worth of Wrapped Bitcoin, $8 million worth of Ether, and $1 million worth of Pendle (PENDLE) to Coinbase and Binance. Since declaring bankruptcy in November of the previous year, FTX has actively sought to raise funds for creditor repayment. Administrators of FTX have successfully recovered approximately $7 billion in assets, with a substantial $3.4 billion in cryptocurrency.

The market response to FTX creditor claims has been positive, with some reaching as high as $0.50 on the dollar in October of the previous year, suggesting that creditors have a reasonable chance of being fully compensated. While an exact date for FTX customer reimbursements remains elusive, current estimates indicate that repayments could commence sometime this year.

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