Celsius Network Repaid $120 Million Loan To Maker: Report

Celsius Network repaid $120 million loan to Maker which reduced the liquidation price of the DAI loan to below $5000 as we can see more today in our latest cryptocurrency news.

Celsius Network made a few loan repayments to reduce the threshold at which it will be forcibly liquidated and the loan paybacks were witnessed on vault #25977 which belongs to the company. The company started making a string of repayments on June 14 and the latest which is also the biggest payment happened yesterday.

In the past few days, Celsius Network repaid $120 million to Maker while Plan C also indicated the company paid $67 million in debt to Compound and Aave. The vault has an outstanding loan of over $82 million with the collateralization ratio increasing to 577%. With the latest developments, Celsius lowered the liquidation prices to $4976 and on June 13, the same day the company froze withdrawals, the prices were close to bitcoin’s price range. The efforts of Celsius to help its case seem to have made results considering the company hired restructuring lawyers and worked with regulators.

This month, other than the repayment, Celsius also cut back its workforce by 150 people. While the latest actions offset the risk of insolvency, the community wonders whether they think the firm will reopen the withdrawals. The biggest question in the room was where the company will get funds to reimburse the lenders but they also showed no interest in bailing out the company. The latest repayments were ell received as further seen in the price of the company’s native CEL token which is up by 17%.

As recently reported, According to a recent report, Celsius Network fired a quarter of its employee list which came a few days after the company issued a statement and reassured that it is working around the clock to resume withdrawals and fix its issues on liquidity. The company’s LinkedIn page now says it has 651 staff members which mean that the fired ones represent about a quarter. A few days ago, Celsius published a statemetn indicating that they are focused and working as fast as they can to stabilize operations.

At the same time, the crypto winter continued with other companies laying off employees and hedge fund Three Arrows Capital filing for bankruptcy.