Celsius has repaid 143 million loans from DAI since July 1
Celsius (CEL) has paid off a significant amount of its debt to Maker Protocol (MKR) since the beginning of the month, indicating that the troubled crypto lending platform was trying to avoid a complete meltdown amid credible rumors of bankruptcy.
Since July 1, Celsius has paid out $142.8 million in Dai (DAI) stablecoins via four separate transactions, according to data from DeFi Explorer. The crypto lender still has $82 million of debt owed to Maker. Of the $1.8 billion in lifetime investments, the company currently has losses of $667.2 million.
With the loan being paid off, the percent liquidation price of the Bitcoin (wBTC) enveloped loan has fallen to $4,966.99 Bitcoin (BTC). The liquidation price has reportedly fallen by nearly half since Celsius recorded a $64 million payment from DAI on July 4, just hours after making a $50 million payment into DAI.
JUST IN: Celsius Network Pays Another $50 Million For It # bitcoin is loaned. The liquidation price dropped to $8,840.
– Watcher.Guru (@WatcherGuru) 4 July 2022
Celsius is among several leading cryptocurrency companies on the verge of bankruptcy after harsh market conditions caused historic losses across multiple positions. The company paused withdrawals in mid-June due to harsh market conditions and later brought in a new legal advisor to advise on the restructuring. Soon reports emerged that the US mega-bank Goldman Sachs was looking to acquire Celsius’ assets.
Related: Crypto platform tells savers how it differs from Celsius Network
Despite liquidity issues and signs of impending collapse in its business, Celsius was reportedly still paying out bonuses until last week. Although Celsius users were still receiving the rewards, they were unable to withdraw them due to liquidity restrictions.