Crypto Chaos Continues as Lending Company Reduces Withdrawal Limit, 3AC Moves Funds, and Celsius Seems to Pay Maker

Source: Adobe/Artusius

The crypto turmoil continues to deepen in the bear market, with more Celsius-related developments, another crypto lending company introducing restrictions and more activity from Capital of the Three Arrows (3AC) – which appears to have shifted some of its funds.

Temperature rises for Celsius

Celsius, which operates the celsius token (CEL) and eponymous blockchain network, appears to have started paying off much of the debt it owes to the Maker (MKR).

Statistics from the DeFi Explorer platform show that a vault believed owned by Celsius began making its final DAI refunds on July 1. It followed another on July 3 and two more on July 4, for a combined total of $142.8 million. Several refunds were also made in mid-June.

The vault uses wrapped bitcoin (WBTC) as collateral, which means the vault will automatically liquidate if the BTC falls below a safe level. Last month, that liquidation price fell to around $17,000 – with BTC hovering around the $20,000 mark.

Celsius, which recently cut its workforce by a quarter, according to a report from Israel, still appears to owe Maker $82 million. The apparent move, however, seems to indicate that the company has yet to give up the ghost – amid widespread fears that it could join the fast-growing ranks of crypto bankruptcies.

Celsius has previously claimed it is ‘working as quickly’ as possible to ‘stabilize cash and operations’ – although insolvency fears persist.

3AC Still “free?”

Struggling crypto hedge fund 3AC, as previously reported, has been ordered into liquidation by a court in the British Virgin Islands and has also sought creditor protection in the United States under the bankruptcy code, which allows foreign debtors to protect based in the United States. assets. But there are still signs of life from Three Arrows – which now appears to be moving chips.

The Peck Shield The Alert Twitter account has provided evidence of what appears to be two large transfers of 3AC stablecoins to the KuCoin platform” in the last 24 hours[s].”

Incredulous observers asked how it was possible that 3AC was “still free”, while Loi Luu, the co-founder and president of the Kyber Network, reflexive:

“Wait, how are they still able to send assets? [I] thought at this point the court appointed liquidator [had] already intervened.

Limits at CoinLoan

The Estonia-based crypto lending platform CoinLoan reduced its 24-hour withdrawal limit to $5,000 from $500,000 previously.

The company wrote in a statement that it was not struggling, but “like any business, we must consider the market.” He added that the move was a “temporary change”, but one that has already been passed.

CoinLoan claimed that the “measure” would allow them to “ensure stable platform operations now and in the future.”

The company further added that suspending all withdrawals “like some other companies have done” would have been “more practical” from a business perspective, but added:

“We understand that some of you may be storing your savings on CoinLoan, so we can’t just disable withdrawals. So we’re just lowering the limit, so you can withdraw some of your holdings if needed. .


Learn more:
– Another blow for Celsius with 150 employees laid off, but CEL rallies
– Celsius positions now healthier, three-arrow capital has been a ‘victim of contagion’ – Nansen

– Crypto Turmoil: 3AC files for bankruptcy, FTX and BlockFi agreement, suspensions at Voyager
– Three arrows reprimanded by Singapore

– KuCoin denies rumors
– New AML Legislation Won’t Ban Individuals From Holding Crypto, Says Estonian Ministry of Finance

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