Celsius begins sell-off! Transfers over $66.6 million in altcoins, sells crypto custody platform

The bankrupt cryptocurrency lending company Celsius Network has recently begun asset liquidation, frequently transferring over $60 million worth of altcoins to exchanges FalconX and OKX, which can be seen as a significant potential sell-off. In addition, its acquired asset custody platform GK8 has been successfully sold to Galaxy Digital, and a settlement has been reached with its Series B shareholders.

Celsius Potential Sell Pressure Reaches $66.6 Million

Celsius Network has been authorized to start selling or converting some of its encrypted assets into Bitcoin or Ethereum starting from July 1. Data company Kaiko had previously warned that liquidating its assets could potentially cause a crash in the prices of altcoins in the market, especially since Celsius held non-BTC and ETH tokens worth about $184 million at the time.

However, according to a report by Blockworks reported, Celsius only started transferring funds as of last Wednesday, and has sent over $66.6 million worth of tokens to the institutional exchange FalconX in the past two days.

This includes $20.65 million in $LINK, $13.52 million in $MATIC, $7.5 million in $SNX, $7.18 million in $AAVE, and $3.07 million in $BNB.

Whether due to liquidation or influenced by the decline in mainstream coins, the aforementioned tokens have all dropped by 3%-7% today, while others with smaller holdings like $1INCH and $SUSHI have seen daily increases of 10-30% recently.

It is evident that the cryptocurrency market, known for its overreactions, also exhibits unpredictable high volatility.

Of course, Celsius may also sell its cryptocurrencies through over-the-counter (OTC) trading rather than on the spot market to avoid affecting market prices, while legally maximizing the value of tokens that can be returned to creditors.

Celsius Sells Custody Platform for $25 Million, Settles with Shareholders

According to Coindesk's report, Celsius officially sold its encrypted asset custody platform GK8 to Galaxy Digital on the 18th, expecting to distribute the $25 million proceeds to its Series B financing shareholders for a settlement. Of the $24 million, $24 million will be used for legal expenses, and the remainder will be distributed internally by Celsius.

However, the Series B shareholders do not seem satisfied with this distribution, claiming in a document that the remaining portion should be evenly distributed among all Series B shareholders first, pointing out that $24 million cannot fully cover everyone's legal fees.

Galaxy Digital spokesperson Michael Wursthorn previously stated:

The price at which GK8 was purchased is significantly lower than the $115 million Celsius paid when acquiring it in November 2021.

Recently, former Celsius CEO Alex Mashinsky has been arrested, and the U.S. Federal Trade Commission (FTC) has accused him and other defendants of misappropriating user assets, resulting in a fine of $4.7 billion.