Celsius Seen Withdrawing ETH, Can It Avoid Bankruptcy?

Celsius’ management looks to avoid bankruptcy filing regardless of advisers and lawyers recommending filing for Chapter 11 bankruptcy. The company has asked users to show support by activating “HODL Mode” on their account which temporarily disables outgoing transactions.

Meanwhile, Celsius has again withdrawn its Ethereum (ETH) positions in Bancor’s liquidity pool to pay loans and continue weekly rewards.

Celsius Liquidates ETH Positions in Bancor Amid Bankruptcy Risk

PeckShieldAlert reported on June 28 that a suspected Celsius address has withdrawn 12,880 Ethereum (ETH) at $1,190.73 and received about 7,183 ETH from a Bancor liquidity pool. Celsius started withdrawing ETH positions in Bancor after it disabled the Impermanent Loss Protection. Last Thursday, the company had withdrawn about 2000 ETH from the liquidity pool and received about 1150 ETH.

Moreover, Celsius has paid some of its loans that were due until June 27. Also, the company has resumed its weekly rewards despite pausing withdrawals, swaps, and transfers between accounts earlier this month.

Meanwhile, advisors are suggesting filing for bankruptcy while CEO Alex Mashinsky and other executives plan to open with limited withdrawals. Celsius believes many of its retail clients would prefer the firm to avoid bankruptcy, as it is painful and time-consuming.

Celsius has asked its users to enable “HODL Mode” which would let lawyers and advertisers believe the support from the community and the level of trust in users. Enabling the function will have no effect on users as currently blocked from withdrawing or transferring funds anyway. However, after the company resumes withdrawal, users may have to wait 24 hours to use their accounts.

The community is looking for another CEL token’s short squeeze to cover their positions. The CEL price is currently trading at $0.7508, down 7% in the last 24 hours.

Celsius Denies Allegations of CEO Alex Mashinsky Leaving the U.S.

Celsius has also claimed that recent reports of Alex Mashinsky fleeing the U.S. are false. Crypto investors Mike Alfred on June 27 tweeted that Mashinsky was stopped by airport authorities for leaving for Israel. However, as per an update by Celsius:

“Consistent with our previous messages, all Celsius employees – including our CEO – are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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