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Celsius (CEL-USD) isn’t looking to fall into the bankruptcy trap — something its peers have been doing a lot in recent months. It has been teetering on a precipice, owing some hefty debts across the market. Today, though, the Celsius network comes another step closer eliminating these debts. A large payment to the Aave (AAVE-USD) network leaves it almost financially free from the platform. It’s also allowing Celsius to get its hands back on a sizable stash of staked Ethereum (ETH-USD) tokens.
Celsius is one of the most notable crypto fund managers and DeFi platforms on the market. At its peak, the platform managed $20 billion in assets through its trading, lending and staking platforms. But with the recent crypto crash, it has been tumbling quickly.
With the collapse of the cryptocurrency market, Celsius found itself in a load of debt with other DeFi service providers. A total of $258 million was owed by the company to Aave and fellow DeFi platform Compound (COMP-USD). Another $223 million was owed to the MakerDAO (MKR-USD) ecosystem.
With these debts at hand, Celsius faced an all-too-real possibility of bankruptcy. Fellow asset managers Three Arrows Capital and Voyager Digital both declared their own bankruptcies late last June.
This pushed the company toward some methods of asset protection that investors found less than ideal. This included a withdrawal halt…
