BlocksInform
Crypto lender Celsius paused withdrawals, swaps, and transfers between accounts earlier this week due to liquidity risks. According to blockchain security PeckShield, Celsius has started withdrawing its Ethereum (ETH) positions in the DeFi protocol Bancor after the firm disabled the Impermanent Loss Protection to protect liquidity providers.
Celsius Clears its Ethereum (ETH) Positions in Bancor
PeckShieldAlert in a tweet on June 23 reported that the suspected Celsius-related address has withdrawn about 2000 ETH liquidity from a Bancor liquidity pool and received about 1150 ETH.
As the DeFi liquidity crisis still persists on the platform, Celsius has become the first to withdraw ETH holdings after the Impermanent Loss Protection was disabled.
On June 20, Bancor announced disabling the Impermanent Loss Protection due to extreme market conditions and market manipulation. However, exposure to Celsius and the selloff of BNT tokens rewards have caused the costs to rise further.
Celsius Network is under pressure because of liquidation risks. The firm had also liquidated its positions earlier to manage liquidity and loans. Moreover, the community-led recovery plan through short squeeze was executed on June 21. Short-sellers of the Celsius’ CEL token covered their positions by pushing up the price through mass purchases and withdrawing them from various exchanges.
