Celsius Transfers $528M WBTC to FTX

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Cryptocurrency lending service Celsius transferred 25,000 wBTC tokens worth $528 million to the FTX exchange. The community fears that Celsius will sell tokens and crash the Bitcoin rate.

Previously, Celsius paid off its debt to the Maker protocol inamounting to $41.2 million, which allowed the company to return the wBTC used to secure the loan. Now these “wrapped bitcoins” are sent to the FTX exchange and, if sold, could significantly affect the rate of the first cryptocurrency.

Analysts also note that the situation mayworsen if 150,000 BTC are distributed among users of the hacked MtGox exchange. Of course, a significant portion of these bitcoins will flood into the market, which will further increase the selling pressure. 

As cryptocurrency lawyer Joni Pirovich emphasized, Celsius’ move could help clients:

“The Maker Protocol uses loans fromsignificant excess of security. Thus, the payment of $41 million released 21,952 wBTC from the collateral. And these funds can be used to pay users. The question is how Celsius will use these funds – leave them for clients, or take a risk and use them to issue new loans.”

Let us recall that in early July, the FTX cryptocurrency exchange refused to absorb the Celsius lending service.