Celsius moved $529M worth of wBTC to FTX exchange: Should we be worried?
Embattled lending platform Celsius has transferred nearly 25,000 Wrapped Bitcoin (wBTC), worth $528.9 million to crypto exchange FTX, prompting concerns from some in the community about whether a dump may soon follow.
The huge transfer to the exchange comes after the lending platform paid off its remaining $41.2 million of debt to Maker (MKR) protocol, freeing up its loan’s entire wBTC collateral.
However, the community is unsure what to make of the transfer, with some fearing that a dump of the wBTC on the exchange could soon follow, pushing Bitcoin prices down.
Others have been more hopeful that the move may be in preparation for Celsius to swap their wrapped Bitcoin for BTC, which may be a good sign for depositors who’ve been hoping for Bitcoin withdrawals to eventually reopen on the Celsius platform. Bitcoin is up 8% in the past 24 hours to trade above $22,100, suggesting market participants are taking the news in their stride.
The 21,962 WBTC unlocked from paying off the remaining DAI loan has already found its way to FTX... that didn't take long...Incoming $BTC dump? https://t.co/A9B9YaLQ1W#CelShortSqueeze = #CelPumpAndDumpNot your keys, not your crypto pic.twitter.com/V2edblhmXZ
The 25,000 wBTC sent to FTX follows the news earlier today that 150,000 BTC may be potentially released into the market as Mt.Gox creditors get their BTC back after an eight-year wait.
So far, both Celsius and CEO Alex Mashinsky have remained radio silent about any movement of funds.
Crypto lawyer Joni Pirovich, Principal of Blockchain & Digital Assets told Cointelegraph on July 7 that Celsius’ repayment of its loan position with Maker will ultimately assist its customers.
Related: Bombshell allegations of fraud as KeyFi takes Celsius to
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