(Bloomberg) -- Crypto lender Celsius Network repaid more loans Monday, as the company continues to battle insolvency.
In the past day, Celsius repaid about $78.1 million worth of USDC stablecoin to lending platform Aave, according to tracker Etherscan. It also repaid $35 million worth of stablecoin DAI on platform Compound.
Amid the recent downturn in cryptocurrency prices, Celsius froze withdrawals in June and more recently started paying off its debts to free up its collateral placed in decentralized-finance applications. Other crypto firms, Voyager Digital Ltd. and Three Arrows Capital, recently filed for bankruptcy.
Since July 1, digital wallets belonging to Celsius paid back more than $300 million worth of debt to various platforms, including Maker, according to Nansen and Etherscan data.
Celsius still has about $120 million of debt outstanding on Aave and Compound, according to tracker Zapper. On these decentralized lending platforms, collateral gets liquidated automatically in certain circumstances unless it’s repaid.
Celsius’s sources of funding to pay back the loans are unclear. The company didn’t respond to a request for comment.
Celsius used to promise people who gave it their digital coins more than 18% in interest on their holdings; Celsius, in turn, lent those coins out.
The distressed lender has provided limited guidance since halting withdrawals on June 12. On June 30, the company said it’s exploring options such as “strategic transactions as well as a restructuring of our liabilities.”
©2022 Bloomberg L.P.
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