Celsius Network Clears DeFi Debt, Reclaims Around $200M Worth Collateral

Amidst the roaring blood-red seas of the ongoing crypto lending space turmoil, embattled crypto lender Celsius Network is inching closer to fully paying off its loans. Recent reports indicate significant progress in settling its obligations to decentralized finance (DeFi) protocols.

Celsius Network, the embattled crypto lender that is facing liquidity troubles, fully paid off its remaining debt to the decentralized finance (DeFi) lending protocol Compound. This move suggests a strategic effort to stabilize its financial position.

Troubled crypto lender Celsius Network is taking steps to fulfill its debt obligations, just as one of its competitors, Voyager Digital, filed for Chapter 11 bankruptcy. This contrast highlights the varying approaches taken by firms navigating the current market challenges.

This morning, according to data from Etherscan, Celsius paid back $50 million in DAI (MakerDAO’s dollar-pegged stablecoin) to decentralized finance (DeFi) lending platforms, further demonstrating its commitment to reducing its liabilities.

The troubled crypto lender Celsius paid down a $258 million debt on the decentralized lending protocols Aave and Compound – possibly in an attempt to reclaim around $200M worth of collateral. This collateral could be crucial for future operations and potentially benefit creditors.

On February, the Celsius mobile and web apps were shut down, as a part of the winding down of its business operations, as detailed in the Plan of Reorganization. This will have no...