Celsius Network transferred millions of crypto before halting withdrawals

The Celsius Network has been making headlines over the past few days after announcing it would halt withdrawals, swaps, and transfers because of “extreme market conditions. The announcement spooked the cryptocurrency market and triggered massive selloffs.

After the announcement, the Celsius Network transferred more than $300 million worth of various cryptocurrencies to the FTX cryptocurrency exchange. The transfer was made without any explanation.

Celsius transferred assets to FTX

There have been several controversial reports surrounding the Celsius Network. The Celsius team apparently unstaked millions of dollars worth of cryptocurrency from the Aave decentralized finance (DeFi) platform.

Celsius has not given any reasons why these transfers have been made. However, speculations on social media about the matter have made waves, spooking investors who cannot access funds from the network.

The transactions made by the Celsius Network started over the weekend. The first batch of transactions saw 3500 WBTC worth around $89 million transferred from the platform. This was followed by another transaction of 50,000 ETH, spooking investors further.

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On-chain data also shows that the Celsius Network has lost more than 100,000 Ether (ETH) to the FTX exchange over the past few days. It also sent around 9500 WBTC. Celsius has also sent other tokens such as FTT, UNI, MATIC, TUSD, and USDP to FTX. The total amount sent to FTX is currently worth around $320 million.

Celsius fails to comment on transfers

The Network has not commented on these crypto transfers. The team’s only announcement is the one made announcing halting certain services, including withdrawals, because of liquidity issues.

The announcement about halting withdrawals happened after the funds had already been transferred to FTX. The CEO of Celsius, Alex Mashinsky, had previously refuted claims that users of the DeFi platform were having issues withdrawing from the network.

Celsius has also not talked about what it plans to do with the FTX cryptocurrency transfers. The crypto community on Twitter has speculated that the DeFi network has suffered from liquidity issues.

One member of crypto Twitter hinted that the company had been facing problems over the past few months following hacks affecting its reserves. The company also lost some money after the issues with LUNA and Anchor. Some users have also provided a solution for the company. Nexo Finance has offered to buyout Celsius, but the company said its offer was rejected by the Celsius team.

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