Celsius Network has finished paying off its $41,2 million debt to MakerDAO, allowing it to unlock the 21.962 wBTC it held as collateral.
Celsius Network has been immersed in a battle against the lack of liquidity and solvency problems for a few weeks. Since June 12, stopped customer withdrawals, the lending platform has been working to restructure its debt.
Last week, Celsius started paying part of their debt with MakerDAO. As of today, the lending platform has completed debt repayment and has unlocked wrapped Bitcoin (wBTC) worth $456 millionHowever, it faces a potential loss of $1.000 billion due to the falling price of Bitcoin.
According to Etherscan data, the final payments have been made from a wallet belonging to the company. In addition, once the payment was made and released the 21.962 wBTC that Celsius Network had used as collateral, the portfolio closed the MakerDAO Vault.
At the time of the debt closure, Celsius’s wallet was no longer at serious risk of liquidation (the price of Bitcoin would have had to reach $2.722 for a forced liquidation to be executed). However, data from DeFi Explore shows that on May 12, a $700 move in Bitcoin could have triggered a forced liquidation on the vault.
La Vault from Celsius Network in MakerDAO reached a total value of 1.800 billion dollars, but The total value recovered is $757 million.The loss is because Celsius was forced to continue paying DAI to avoid liquidation, as Bitcoin has also lost some of its value since the vault was created.
If Celsius were to sell its wBTC right now, would lose almost 1.000 billion dollars from its customers. On the other hand, since the unlocking of the Vault, Celsius Network has transferred 24.462,6 wBTC to the FTX exchange.
For now, there is no official information on what will happen to the wBTC sent to FTX. Part of the community fears that they will be sold, which would lead to a further drop in the price of Bitcoin. However, another part believes that Celsius has plans to exchange wBTC for BTC, which could be a sign that the lending platform is recovering.
The nearly 25.000 wBTC sent to FTX by Celsius joins the 150.000 Bitcoins that Mt.Gox users have locked up and could be released in the next few weeks, after eight years.
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