- Celsius Network, a bankrupt crypto lender, has been selling off its altcoin assets.
- The company has reportedly sold around $23.5 million in several cryptocurrencies, including LINK, BNB, FTX, and SNX.
- The sales are reportedly part of a financial restructuring plan that will see Celsius use the funds to buy Bitcoin (BTC) and Ethereum (ETH).
- Celsius is facing several legal challenges, including investigations by the SEC, CFTC, DOJ, and FTC.
- The legal issues and sell-off of assets have led to a decline in the price of CEL, Celsius’ native token.
Celsius Network [CEL], a bankrupt cryptocurrency lender, sold part of its altcoin assets last week, according to a tweet from the crypto data tracker, Lookonchain.
According to Lookonchain on-chain statistics, Celsius has moved around $23.5 million in several cryptocurrencies to FalconX and OKX, including BNB, ZRX, LINK, BONE, and SNX.
In this article, we will go over the details of LookOnChain’s tweet, as well as the direction the legal proceedings of Celsius’s crypto selloff is taking, and how the crypto market at large, is reacting to it all.
Celsius Moves Millions In Crypto
The Celsius network, which is currently dealing with significant legal issues, has reportedly begun to liquidate significant volumes of altcoins, including 1.27 million LINK, 2.83 million SNX, 12,597 BNB, 4.45 million 1INCH, 8.53 million ZRX, 439,000 FTX, and a significantly smaller amount of 186,149 BONE, Shiba Inu’s native token.
The selling has been related to a recent change in Celsius Network’s financial management, with the company reportedly selling off its altcoin assets and using the funds to buy Bitcoin (BTC) and Ethereum (ETH) after getting permission from Judge Martin Glenn of the Southern District of New York this July.
The Celsius Network’s Legal Troubles
The SEC, CFTC, DOJ, and FTC are now investigating former CEO Alex Mashinsky and Celsius Network for several counts of fraud and securities manipulation. Following Mashinsky’s recent arrest, Celsius Network has agreed to pay a record-breaking $4.7 billion settlement.
The settlement is one of the biggest in FTC history, only surpassed by Meta’s $5 billion fine in 2019.
However, the network’s recent financial operations indicate that this payment would be delayed, as the corporation initially tries to recover what remains of customer assets while the bankruptcy processes are continuing.
The legal issues for Celsius Network and Mashinsky highlight a tumultuous moment in the cryptocurrency business when regulatory attention is increasing.
However, as of press time, the network still has not fully liquidated all of its holdings and is still holding on to a good percentage.
CEL Price Suffers
According to a recent Kaiko analysis, market liquidity for the CEL coin has gone down significantly since the bankruptcy procedures began.
With insufficient liquidity to support the altcoin’s value, CEL’s distribution has increased in recent months.
The daily charts also show that CEL has been on the receiving end of major bearish pressure over the last few quarters, with a current spot price of $0.1643 at the time of writing.
Bitcoin, Ether Altcoins Take a Hit
This week, Bitcoin and ether aren’t left out of the bearish onslaught.
For the first time in a while, Bitcoin has slid below the $30,000 mark, along with the rest of the crypto market.
Since breaking above $31,000 sometime last week, after Ripple’s three-year court dispute with the SEC came to an end, Bitcoin and the rest of the crypto market soared, with some cryptocurrencies like XRP itself, XLM, Solana and several others registering double-digit gains.
However, Bitcoin is currently struggling below the $30,000 mark and is now trading at exactly $30,012 at the time of writing.
Ether as well, is struggling below $2,000 and is trading somewhere around $1,909.
Among the coins that Celsius is dumping, however, the charts show some significant losses.
BNB for example, is down by about 20% from June 4th, after breaking below its yearly ascending trendline.
LINK is bearish as well on the daily timeframes, and is down by a whole 2.7% over the last 24 hours.
1Inch has been bearish over the better part of the year and has declined 50% from its year-to-date highs ($0.7)
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.