Celsius Network Crypto Holdings Are On The Move, What’s Happening?

In a recent development, the Bankrupt crypto lending firm Celsius Network has transferred its crypto holdings amid its ongoing legal battles and plans to repay its customers.

Celsius Network Transfers $30 Million Worth Of Crypto

In a post shared on his X (formerly Twitter) platform, software engineer Cam Crews confirmed that Celsius had transferred around $30 million of crypto (ETH and stablecoins) and “nearly all CEL token [tokens] in existence” from their Fireblocks crypto wallet to a new wallet. 

Specifically, according to on-chain data, Celsius transferred 703.5 ETH, over 653 million CEL, 7 million USDC, and other stablecoins like TrueAUD, TrueCAD, TrueHKD, and TrueGBP to the new wallet (0x455257963812C008ce8EdF3d08cB48e95C8aa2E2)

As Crews mentioned, the CEL tokens transferred by the bankrupt crypto lender represent almost the total supply of CEL tokens which stands at 695,658,160, according to data from CoinMarketCap. This also shows that the company transferred tokens not yet in circulation, as the token’s circulating supply is 238,863,520. 

Meanwhile, Celsius Network has yet to address why it made these transactions, with some speculating that the company may be looking to offload these tokens. However, they doubt anyone will be willing to buy them as they are worth “zero.” CEL is currently down over 98% from its all-time high of $8. 

This development comes amid the company’s plans to shut down its app in November following plans to repay customers what they are owed and launch a new creditor-owned company, which will be known as “NewCo.”

“Sam Bankman Machinsky”

In another post, an X user responding to the news of these latest transactions referred to the recent events as “Sam Bankman Machinsky.” This most likely relates to the fact that Celsius’ founder, Alex Mashinsky, and the founder of the defunct crypto exchange FTX, Sam Bankman-Fried (SBF), share a similar fate, with both being accused of defrauding their customers. 

Specifically, both Mashinsky and SBF have been charged with securities fraud, commodities fraud, and wire fraud on customers. However, unlike Mashinsky, SBF’s trial is ongoing, with the defendant facing up to 100 years in prison if found guilty. 

According to a report by Bloomberg, Mashinsky’s trial has been scheduled for September 17 next year. His lawyers are reported to likely argue that their client didn’t commit securities fraud since cryptocurrencies cannot be labeled as a security. 

The criminal trial of former Celsius Network Ltd. Chief Executive Officer Alex Mashinsky has been scheduled for Sept. 17, 2024. Like in Sam Bankman-Fried’s case, one of Mashinsky’s close associates is expected to testify against him after it was reported that Celsius’ ex-Chief Revenue Officer (CRO) Roni Cohen-Pavon pleaded guilty to criminal charges against him.