Celsius Network fully repays its debt to Compound and claims the collateral it pledged. The troubled cryptocurrency lender has been struggling for days now, with the platform shutting down its operations and cutting off users’ access to their funds.
Last week, as part of its restructuring strategy, Celsius paid off its bitcoin loan to the Maker protocol. Similar strategic financial management seems to be being used by Celsius as last week. Last Monday, the crypto lending company paid off its bitcoin loan and released $453 million in collateral. This week it looks like the same tactic is being used as Celsius has fully paid off the compound loan.
Celsius Network Releases 10,000 WBTC Collateral
The week started with Celsius repaying its loan payments to Aave and Compound. The troubled lending platform released the collateral after paying the $50 million loan early Wednesday.
The company received 10,000 packed bitcoin (WBTC), which is worth approximately $198 million at the time of writing, with WBTC trading at $19,802. Celsius refunded the $50 million in two DAI payments. Compound returned 6,900 and 3,100 WBTC after the repayment pledged as collateral.
In any case of loan payments, the loans were oversecured. The move is positive for Celsius as the collateral-backed assets are worth more than the amount repaid.
Collectively, Celsius has recovered more than a billion dollars in assets with the loan payments. The problems for the crypto lending company started on June 12, when it stopped all activities on the platform. Users could not access their funds from that day on. It has been more than 31 days since the event and there has been no update on a date when the users can expect to access their funds.
With the United States posting its highest inflation rate of 9.1% today, crypto prices are vulnerable and could fall further.