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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Meanwhile, Celsius has again withdrawn its Ethereum (ETH) positions in Bancor’s liquidity pool to pay loans and continue weekly rewards.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PeckShieldAlert reported on June 28 that a suspected Celsius address has withdrawn 12,880 Ethereum (ETH) at $1,190.73 and received about 7,183 ETH from a Bancor liquidity pool.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 Last Thursday, the company had withdrawn about 2000 ETH from the liquidity pool and received about 1150 ETH.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.
