Celsius, the embattled lender which is trying to avoid filing for bankruptcy, has freed up about $450 million worth of Bitcoin after paying off its loan-obligations to Maker.

This came after the lender paid an additional $41.2 million in Dai to decentralised lending platform Maker. The firm has actively been paying back its loans in the last few days in an attempt to lower its liquidation price for its WBTC position. However, the ‘financial hole’ in the company’s balance sheet has yet to be determined as the community scrambles to put together a rescue operation.

Cryptocurrencies aren’t going away. Buy Bitcoin & Litecoin here.

Celsius has slowly reduced its debt to Maker over the course of a few weeks, paying back $225 million in the last seven days. The main objective of repaying its loans is to reclaim its locked-up collateral in a bid to ease liquidity issues for the lender, and ultimately to resume withdrawals which have been halted since June 12 to avoid a bank run.

Community members are proactively looking for answers as to where the rest of the user account funds might be or if the hole needs to be plugged.

Banktothefuture CEO and Celsius shareholder Simon Dixon noted in a Twitter space on Thursday that his ‘syndicate’ is ready to plug a potential billion-dollar-plus blackhole. Celsius has yet to release further comments on its current situation, with the last communication dating back to June 30.

Fundstrat analyst Walter Teng said that once the collateral is released, the lender is expected to sell assets through OTCs or centralised exchanges to meet creditor requirements and resume fund withdrawals.

Meanwhile, a Bloomberg report revealed that a former money manager has filed a lawsuit against the lender alleging market manipulation and fraud.

Regardless, the Celsius community is looking for positive solutions that do not involve lengthy lawsuits or a bankruptcy filing – with Simon Dixon proposing a ‘bail-in’ for the embattled lender in a ‘depositor’s first‘ rescue operation.

Join the telegram channel for updates, charts, ideas and deals.

Did you like the article? Share it!