Celsius Network has completely paid off its Bitcoin loan, resetting its liquidation price to zero.
The lending platform has been paying off its loan on the Maker Protocol since mid-June and after it announced pausing of withdrawals.
The complete repayment of its Bitcoin loan could be part of Celsius Network’s restructuring plan and commitment to making all its users whole.
Celsius Network has completely paid off its Bitcoin loan and thus resetting its liquidation price back to zero.
According to DeFiExplore.com, Celsius Network paid a total of 41.2 million DAI to close its loan from the Maker protocol and retrieve 21,962 Wrapped Bitcoin (BTC) as collateral.
Celsius Has Been Paying Off its Bitcoin Loan Since June 14th.
The transaction has been highlighted in the screenshot below. Also, from the screenshot, it can be observed that Celsius Network has been making payments on its Bitcoin loan since June 14th and immediately after it paused withdrawals on June 13th.
In addition, it can be observed that Celsius had previously been adding more collateral to its loan from mid-May and after the crypto markets were shaken by UST’s collapse.
Celsius Clearing its Loan Could Be Part of its Restructuring Plans and Making its Users Whole.
Celsius Network clearing its loan could open the doors to a complete or partial resumption of withdrawals on the lending platform. The move could also be part of Celsius’ restructuring plans after it recently let go of 25% of its workforce.
A recovery plan has already been proposed by the team at Bnk to The Future Capital, which had earlier been engaged by Celsius to manage the community part of its $750 million Series B funding round. The restructuring plan consists of three proposals:
A restructuring of Celsius Network and allow depositors to benefit from any form of recovery through financial engineering.
A pool of Bitcoin whales to co-invest with the community in a manner similar to how Bitfinex handled its 2016 hack.
An operational plan that allows a new entity and team to rebuild and make depositors whole.
Bnk To The Future Capital founder and CEO Simon Dixon has continually stressed on Twitter the importance of a ‘depositors first’ approach in sorting out the issues at Celsius Network. In one of his most recent Twitter updates, he stressed that Celsius Network needed to avoid filing for bankruptcy like Mt. Gox did back in 2014. did. He explained:
I add that the Celsius Network community will need to apply pressure to prevent crypto assets being sold in Chapter 11 like we did in Mt. Gox. If not depositors lose & cheap Bitcoin will be scooped up at the cost of innocent misled investors. Let’s prevent that #DepositorsFirst.