24/7 Cryptocurrency News

Just In: Here’s What Celsius Is Doing To Prevent Bankruptcy

Published by
Just In: Here’s What Celsius Is Doing To Prevent Bankruptcy

Beleaguered crypto lender Celsius and its affiliates are doing everything to prevent a bankruptcy filing. Moreover, the management is reaching out to its shareholders for solutions. However, Celsius continues to explore loan repayments, layoffs, and CEL short squeeze options in the last few days. This has dropped the liquidation price significantly, but will it be enough?

Meanwhile, the crypto lender just withdrew 30,000 ETH from Aave and 37,000 ETH from Compound and transferred ETH to other addresses.

Advertisement

Celsius Exploring All Options to Prevent Bankruptcy

Celsius has lowered the liquidation price to $11,800 by actively paying back loans. Today, the company paid back 50 million USDC (from an FTX address) for its AAVE position to withdraw 459K LINK from AAVE and 6.2 million DAI (from a Binance address) for its Maker position.

More loan payments will further lower the Celsius liquidation price. This might help the company survive if BTC bottoms soon. Currently, the collateralization ratio has increased to 235% with $462 million in wBTC locked.

Unfortunately, Celsius has laid off around 150 employees as part of the restructuring plan as it faces insolvency. The company had hired restructuring advisors after it paused withdrawals on June 13. The move comes amid massive layoffs by crypto firms including Coinbase, Huobi, and Bybit due to extreme market conditions.

The company in its blog post on July 1 said it is taking steps to protect assets and explore options such as pursuing strategic transactions and restructuring liabilities.

Meanwhile, Celsius’ CEL token is undergoing a short squeeze as short-seller mass purchase CEL tokens to push the price higher and take profit by withdrawing positions from various exchanges. Celsius just withdrew 1.80 million CEL tokens from FTX. The CEL token prices have soared 20% in the last 24 hours, with the current price trading at $0.90.

The crypto lender has already withdrawn most of its staked Ethereum (stETH) and Ethereum holdings from Bancor to pay off its debt.

Advertisement

BnkToTheFuture’s Celsius Recovery Options

Celsius’ lead investor BnkToTheFuture and its CEO Simon Dixon, holding over 5% of Celsius shares, recommend three proposals related to restructuring and rebuilding to relaunch Celsius and fundraising from Bitcoin whales and the community. Dixon believes a depositors-first approach is the only option and will call for a shareholder’s meeting to resolve the issues.

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces

The FOMC minutes have signaled a dovish shift from the Fed officials, who look likely…

October 9, 2025
  • 24/7 Cryptocurrency News

North Dakota To Issue ‘Roughrider’ Stablecoin Following Wyoming’s Footsteps

North Dakota is set to become the second U.S. state to issue a stablecoin, named…

October 8, 2025
  • 24/7 Cryptocurrency News

Ethena Labs and Jupiter Partner to Launch JupUSD Stablecoin on Solana

Ethena Labs reported that it has partnered with Jupiter Exchange to develop JupUSD. This is…

October 8, 2025
  • 24/7 Cryptocurrency News

BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM

BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has become the most bought exchange-traded fund…

October 8, 2025
  • 24/7 Cryptocurrency News

MetaMask Launches Hyperliquid Perpetuals In-App, Plans To Integrate Polymarket

MetaMask has officially introduced perpetuals trading on its platform, powered by Hyperliquid. Meanwhile, the crypto…

October 8, 2025
  • 24/7 Cryptocurrency News

XRP Treasury Holdings Hits $11.5B as Nasdaq-Listed Reliance Global Adds $17M in Fresh Buy

XRP holdings in corporate treasuries have now surpassed $11.5 billion in value. This follows news…

October 8, 2025