Crypto lender Celsius converts almost 23,000 WBTC into bitcoin

Beleaguered crypto lender Celsius converted 22,962.8 WBTC into bitcoin on Feb. 28.

The transaction occurred with the consent of the Celsius creditor committee, according to a filing in the lender’s Chapter 11 bankruptcy protection proceedings on March 3.

No reason was given as to why the exchange occurred. Wrapped bitcoin, or WBTC, is an ERC-2o token interoperable with the Ethereum blockchain.

One of a number of crypto lenders to fall afoul of the bear market, Celsius entered into Chapter 11 bankruptcy proceedings in July, when it revealed a $1.2 billion hole in its balance sheet. Since then, it’s been working through a restructuring process and figuring how to pay creditors.

In January, a court-appointed examiner report detailed multiple operational failures, dishonest public statements, market manipulation and Ponzi-like recycling of client assets.

Last month, it put forward plans for a sale to NovaWulf Digital Management, an investment firm founded in 2021 by former Wall Street dealmakers. Those plans were supported by the Celsius creditor committee earlier this week.

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