Cryptocurrency lender Celsius Network, which had to halt withdrawals on June 13 due to liquidity concerns, fully repaid its debt of more than $50 million from DAI to decentralized finance (DeFi) protocol Compound on June 13 July, according to string data.
The refund was made in two transactions. In the first transaction, Celsius transferred $29.3 million from DAI to Compound, supplementing it with an additional $20.8 million from DAI in the second transaction.
The refund resulted in Celsius recovering a total of 10,000 Wrapped Bitcoin (WBTC) that was locked up as collateral, worth approximately $195.7 million at current prices.
Celsius still owes just over $72,300 worth of REN tokens to Aave, according to Data of Zapper.
Celsius has gradually repaid its debts to various DeFi protocols over the past few weeks. On July 7, Celsius repaid its Maker Protocol loan, releasing more than $400 million in collateral.
Private investor and crypto influencer Mike Alfred, however, said Celsius was using client assets to repay its loans and filing for bankruptcy is expected to follow soon.
At the current rate, given that they can essentially leverage their entire asset base (customer assets), Celsius will have paid off all Defi loans by the end of this week. The bankruptcy filing is expected to take place shortly thereafter.
— Mike Alfred (@mikealfred) July 11, 2022
The Vermont Department of Financial Regulation (DFR) said on July 12 that he thinks Celsius is “deeply insolvent”. The DFR added that Celsius’ assets and investments are “probably insufficient to cover its outstanding obligations”.
Celsius had nearly $12 billion in assets under management as of May 2022, with nearly 2 million clients. The company has been tight-lipped about its takeover plans. On June 30, Celsius said in a blog positiont that it is “working as quickly as possible to stabilize liquidity and operations”.