The cryptocurrency loan company Celsius ran into financial problems amid the bear market, and it has since been struggling with operations. Although the firm stands a high chance of pushing for bankruptcy, it’s gradually repaying its debts to decentralized lending protocols, with the latest being Aave.
Celsius repays $20 million to Aave
Celsius has repaid $20 million worth of USDC to DeFi lender Aave. Blockchain security firm PeckShield reported the new development early today, sharing a screenshot of the blockchain transaction on Twitter. The funds originally came from FTX to Celsius, before the payment to Aave.
On June 20th, Celsius repaid about $10 million in DAI to Compound Finance. More recently, it cleared off a debt of over $120 million to MakerDAO, which enable them to regain access to Bitcoin collateral worth more than $440 million.
Presently, the company now reportedly owes a total debt of $215 million to DeFi lenders; about $85 million DAI to Compound, and $130 million USDC + $82,500 Ren (REN) to Aave, still.
More hope for Celsius depositors
The gradual repayment of these debts by the lending company spells hope for the users or depositors, according to industry experts. The users have not been able to withdraw their funds from the platform since June 13th. However, as the firm gradually regains collateralized assets, it could be able to facilitate the withdrawal requests.
The debt repayment to Maker is a key milestone for Celsius that should give users and other stakeholders some hope that the company can continue to work through its loan book.Alex Tapscott, Ninepoint Partners
In other news, the beleaguered cryptocurrency lending company has contracted new legal advisers from Kirkland & Ellis LLP, the largest law firm by revenue, to assist with its restructuring plans. This is the same law firm that worked with Voyager Digital on its Chapter 11 bankruptcy filing.