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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.
As of 17th May 2022, Celsius stated they had 106,802 bitcoin held in user accounts.
Currently, only 24,462 has been identified on chain to my knowledge.
A question to the wallet trackers…..where is the rest or do they only have 24,462 now?
Not FUD, genuine question. pic.twitter.com/JAN9b3VoWI
— Yield Labs 🧪 (@YieldLabs) July 8, 2022
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.
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