Celsius repays its troubled loan and makes another worrisome move

Just after fully repaying the residual DAI debt of its $440 million loan to MakerDAO and dropping the loan liquidation price to zero, Celsius has been caught in transferring about $538M worth of wBTC to crypto exchange FTX. In the past week, Celsius has been actively repaying its debt to MakerDAO to avoid disastrous liquidation.

A few hours later after reclaiming $450 million of collateral in WBTC from the Maker vault, the crypto community on Twitter noticed that a wallet linked to Celsius has started to move the recently regained collateral to the FTX exchange. As of the time of this writing, $538 million worth of wBTC has been transferred to a wallet associated with FTX, according to on-chain data.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 24,462 #WBTC (510,853,104 USD) transferred from Celsius Network to #FTX https://t.co/HFTdffD1fu
— Whale Alert (@whale_alert) July 7, 2022

This move has been met with concerns, as possibly dumping such a large amount of wBTC could potentially create turbulence in the market pushing the BTC price down.

As of the time of publication, bitcoin is up by more than 7% over the last 24 hours trading at $21,800.75.

However, some feel more optimistic assuming that this transfer may be the sign that Celsius is preparing to swap wBTC for BTC, which gives hope to Celsius investors to finally withdraw their BTC holdings when the platform resumes operations.

For its part, Celsius has remained silent on Twitter for the past week, as well as its founder Alex Mashinsky. The last announcement dated June 30, states that the company is taking measures to stabilize liquidity.