Celsius moved $320m to FTX before halting user withdrawals, transfers

Vinod Dsouza
celsius cel network token
Source: Pixabay

Fears of Celsius (CEL) token pulling off a TeraUST and Luna style crash and heading to $0 is looming. Celsius fell nearly 70% after the firm announced they are pausing withdrawals to “stabilize liquidity”. The crypto staking, lending platform is now in muddy waters as rumors claim that the company unstaked $247 million worth of Wrapped Bitcoin from AAVE and sent it to FTX exchange. Speculations are rife on social media that Celsius has been moving large amounts of WBTC, Ethereum, and other cryptocurrencies while simultaneously pausing withdrawals for users.

Read More: Celsius halts user withdrawals due to ‘extreme market conditions’

Unusual and mysterious crypto movements from Celsius’ main DeFi wallet began moving liquidity at 18:00 ET on June 12. The liquidity was moved to FTX as it removed WBTC from its main AAVE staking and lending platform. Celsius had earned interest on its deposits, mainly stored in its DeFi wallet.

Users claim 9,500 WBTC tokens worth $247 million have been moved from Aave to FTX exchange. The movement of liquidity has been unknown and not specified by the Celsius network.

In addition, apart from moving WBTC, Celsius has also moved 54,749 Ethereum worth $74.5 million to FTX, alleged users. Users allege that the Celsius board is not transparent with their dealings and is demanding answers for the fund’s movement.

Overall, Celsius has been accused of $320 million worth of liquidity to the FTX exchange while pausing withdrawals for its users.

“Celsius withdrew 50,000 Ether and 7,000 WBTC collateral from its Aave position in core DeFi wallet 0x8ace. 6,000 WBTC and 20,000 Ether (so far) have been sent to #FTX. After receiving $169 mil $USDC from FTX,” tweeted a user.

“PeckShieldAlert Celsius transferred ~3,500 $WBTC (~$89m) to FTX within the last hour,” alerted and tweeted PeckShieldAlert.

Celsius Network On A Free Fall

Celsius slumped 70% today after announcing it is pausing withdrawals for users. The token is now down nearly 40% and could head south further. Also, the entire cryptocurrency market is experiencing a bloodbath today as Bitcoin fell below the $25,000 mark today. In addition, $200 million worth of Bitcoin shorts were liquidated in the past 24-hours making the leading crypto bleed.

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It is advised to stay away from CEL Network in the hopes of ‘buying the dip’. Moreover, the crypto market is now in a free-fall mode and CEL could faced further drawdowns.

At press time, Celsius was trading at $0.226039 and is down 40.4% in the 24-hours day trade. It is also down 97% from its all-time high of $8.05, which it reached in June last year.