Celsius Network kickstarts a new month with MakerDAO debt payments

Celsius Network MakerDAO

The Celsius Network has kick-started the month of July with some repayments of its debts. Recently the U.S- based cryptocurrency loan company has paid over $142 million towards MakerDAO loans. Further, it is paying off its debts to Aave and Compound also. A sum of $67 million has been paid to both parties for their loan repayment. The Celsius Network is continuously lowering its Bitcoin liquidation price and has gone under $5,000, as of July 1.

Celsius is facing a severe liquidity crisis in the bear market due to which it picked up hundreds of millions of dollars as loans from MakerDAO using its Wrapped Bitcoin (WBTC) as collateral. According to the On-Chain data, Celsius is maintaining collateralized structured loans on multiple lending protocols. Celsius still owns a $335 million debt combined. The centralized lending firms still owe 20% of the total debts to MakerDAO, 20% to Aave, and 32% to other parties.

Celsius Network transactions for Maker DAO, Source: DefiExplore.com

Celsius has also paused all the withdrawals three weeks ago due to extreme market conditions. The major cryptocurrency lending firms and exchange companies like NEXO and FTX offered to bail the company out. As a matter of fact, FTX has walked away from Celsius after allegedly finding a $2 billion discrepancy in the financial books.

However, Celsius did hire Citigroup and Akin Gump Strauss Hauer & Fed LLP to help itself with financial losses. The team is doing its best to keep the firm out of bankruptcy proceedings.

Moreover, Celsius laid off its 150 employees as it entered the month of July. It has also started to repay its outstanding loans. The company is doing the best it could do to survive the bear crypto market and gain the trust of as many investing firms as it can.

Also read: Cypherpunk liquidates all of the BTC and ETH treasury

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