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Celsius repays 120 million Bitcoin loan, liquidation line drops to $5,000; CoinLoan limits withdrawals

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Celsius repays 120 million Bitcoin loan, liquidation line drops to $5,000; CoinLoan limits withdrawals

The lending platform Celsius Network repaid a $120 million Bitcoin loan, significantly reducing the forced liquidation price; in addition, another lending platform CoinLoan claimed that due to the influence of institutions such as 3AC and Celsius, they temporarily restricted users' daily withdrawal limit to below $5,000.

Celsius

According to DeFi Explore data, Celsius has been gradually repaying to raise the liquidation line since 6/14. After repaying $50 million and $64 million on 7/4, the current data is as follows:

  • Collateral: 23,962 WBTC
  • Liquidation price: $4,966.8
  • Liquidation ratio: 577.81%
  • Debt borrowed: $82 million DAI

On 5/12 and 6/13, Celsius' Bitcoin collateral on Maker was facing liquidation with liquidation prices of $25,942 and $22,534 respectively. As shown in the above chart, the crisis has been temporarily averted after repaying DAI and increasing WBTC collateral.

Withdrawals Suspended Indefinitely

Nevertheless, Celsius has yet to announce when user withdrawals will resume. The wallet tracking by Zapper shows that Celsius' debt structure is highly complex, involving debts in various protocols and platforms, including $100 million on Compound and $175 million on Aave.

CoinLoan Restricts Withdrawals

According to the lending platform CoinLoan's announcement, the platform emphasizes that assets like stETH, Luna/UST, and 3AC are unaffected, but market volatility has led to a surge in withdrawal requests. To ensure smooth operations in the future, withdrawals will be limited to below $5,000 per day starting from 7/4.

CoinLoan states that the withdrawal restrictions are temporary and will resume withdrawals immediately once market conditions allow.

The market has seen a slight rebound with Bitcoin back above $20,000, reaching $20,158 at the time of writing.

Voyager Reaffirms: Our Funds are Sufficient

Cryptocurrency broker Voyager Digital, linked to 3AC, reiterated in a statement on 7/3 that the platform holds over $1.3 billion in crypto assets, with over $650 million that can be claimed from Three Arrows Capital and over $350 million in cash at Metropolitan Commercial Bank. They are actively working on the matter and will announce further updates when available.