Celsius (CEL) has returned a substantial amount of its debt to the Maker (MKR) protocol since the beginning of the month, suggesting that the disgraced crypto lending platform was trying to avoid a complete collapse amid credible rumors of insolvency.
From July 1, Celsius has redeemed $142.8 million worth of Dai stablecoins (DAI) through four separate transactions, according to data from DeFi Explorer. The cryptocurrency lender still owes Maker $82 million in debt. Of the $1.8 billion in lifetime investments, the company’s losses currently stand at $667.2 million.
With the loan payments, Celsius’s settlement price on its Wrapped Bitcoin (wBTC) loan has fallen to $4,966.99 per Bitcoin (BTC). The settlement price has reportedly dropped by nearly half since Celsius posted a $64 million DAI payment on July 4, just hours after paying $50 million in DAI.
JUST IN: Celsius Network has paid off another $50 million towards its #bitcoin loan. Their liquidation price has dropped to $8,840.
— Watcher.Guru (@WatcherGuru) July 4, 2022
Celsius is one of the cryptocurrency firms on the brink of insolvency after extreme market conditions led to historic losses across multiple positions. The company halted withdrawals in mid-June due to extreme market conditions and subsequently hired a new legal advisor to advise it on the restructuring. Reports soon emerged that US megabank Goldman Sachs was trying to acquire Celsius’s assets.
Despite liquidity problems and signs of an imminent collapse of its business, Celsius was still paying bounties with no problem until last week. Although Celsius users were still receiving rewards, they were unable to withdraw them due to lack of liquidity.
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