Crypto loan platform Celsius Network has fully repaid the loan on the MakerDAO DeFi protocol and withdrawn a total of 23,962 WBTC collateral worth ~$490 million.

An analyst under the pseudonym DeFiyst suggested that Celsius initially held the assets through an over-the-counter deal with prior agreement.

It also noted that the funds were sent to the company’s main wallet, which includes major debt positions in Compound (~$100 million) and Aave (~$178 million).

As promised, update on any major move:

All DAI debts paid @CelsiusNetwork wBTC producer vault and collateral removed ($450M in BTC).

I imagine they already set up an OTC deal. It’s doubtful that this hit the spot markets, but we’ll see. https://t.co/nqZynVWiAI pic.twitter.com/qmk3WuWiEu

— DeFiyst (@DeFiyst) 7 July 2022

Expert: “Consolidation of funds before bankruptcy?” She asked.

Further actions by Celsius showed that the firm is likely to bring the cryptocurrency to the spot market, putting pressure on the bitcoin price. DeFiyst noted that the crypto lender has started moving funds to pre-exchange wallets and has sent a test transaction of 0.01 BTC to FTX.

0.01 BTC (test amount). It’s fair to assume that $0.5 billion of BTC will now go to FTX. pic.twitter.com/O1PBDTa4Hl

— DeFiyst (@DeFiyst) 7 July 2022

Deribit Insights writer Zahir Ebtikar emphasized that Celsius has been actively reducing its debt positions for the past three weeks. According to him, the company’s actions “mistakenly showed the market how they are assessing their own solvency and debt reduction.”

“From rumors that FTX is pulling out of its deal with Celsius, we can conclude that the firm is in a much worse financial position than any other lender. During this time, the company has benefited from restructuring and all signs of bankruptcy are on the horizon,” he said.

From the rumors that FTX is walking away from its deal with Celsius, we can conclude that the firm is in a much worse financial position than any other credit book.

During this time, the firm has drawn on restructuring experts and is showing all signs of bankruptcy on the horizon.

— Zaheer (@SplitCapital) 7 July 2022

On June 13, Celsius suspended withdrawals, clearing and transfers between accounts “due to extreme market conditions”. Analysts suggested that the real reason for what happened was a “liquidity crisis”.

Adam Levitin, a law professor at Georgetown University, commented on the company’s later actions, noting that its management was based on “an adventure with the resurrection.” He expressed the view that the bankruptcy of the company was almost inevitable.

Recall that, according to media reports, in this case, the financial holding Goldman Sachs plans to collect $ 2 billion from investors to buy Celsius assets.

Also in financial trouble, rival platform BlockFi has made a deal with FTX.

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