PORTLAND, OREGON (BLOOMBERG) – Crypto lender Celsius Network repaid more loans Monday (July 11), as the company continues to battle insolvency.
In the past day, Celsius repaid about US$78.1 million (S$110 million) worth of USDC stablecoin to lending platform Aave, according to tracker Etherscan. It also repaid US$35 million worth of stablecoin DAI on platform Compound.
Amid the recent downturn in cryptocurrency prices, Celsius froze withdrawals in June and more recently started paying off its debts to free up its collateral placed in decentralised-finance applications.
Since July 1, digital wallets belonging to Celsius paid back more than US$300 million worth of debt to various platforms, including Maker, according to Nansen and Etherscan data.
Celsius still has about US$120 million of debt outstanding on Aave.
Other crypto firms, including Voyager Digital and Three Arrows Capital, recently filed for bankruptcy. On these decentralised lending platforms, collateral gets liquidated automatically in certain circumstances unless it is repaid.
Celsius’ sources of funding to pay back the loans are unclear. The company did not respond to a request for comment. Celsius used to promise people who gave it their digital coins more than 18 per cent in interest on their holdings; Celsius, in turn, lent those coins out.
The distressed lender has provided limited guidance since halting withdrawals on June 12. On June 30, the company said it is exploring options such as “strategic transactions as well as a restructuring of our liabilities”.