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Celsius Network Kicks Off July by Repaying $142M to MakerDAO

The Celsius Network has repaid over $142 million in MakerDAO loans since July 1, rapidly lowering its Bitcoin liquidation price from above five figures to under $5,000. The company repaid $114 million to the protocol on July 4.

According to crypto researcher Plan C, in combination with MakerDAO payments, the company paid off further debts to Aave and Compound on July 2 which amounted to $67 million.

The flurry of financial activity has already whipped Crypto Twitter into a state of excitement, but there are disagreements about what it all means. 

A long and frantic pause

It has been just over three weeks since Celsius Network confirmed it would be ‘pausing’ all withdrawals. On June 13 the lender announced that “extreme market conditions,” had precipitated the decision and that over time it hoped to be “in a better position to honor… its withdrawal obligations.”

Since that date there have been a significant number of twists and turns to the tale, with first Nexo and then FTX offering to bail the company out. FTX is said to have walked away from any deal after allegedly finding a $2 billion black hole in the company’s finances. 

Celsius swiftly hired Citigroup and Akin Gump Strauss Hauer & Feld LLP to help it restructure its finances as the lender seeks to find any route out of bankruptcy proceedings.

One week after Celsius suspended withdrawals Bancor suspended its impermanent loss protection. Mark Richardson, Bancor’s Head of Market Research, was clear that the suspension was precipitated by another protocol attempting to destabilize Bancor and short its tokens. In an AMA Richardson revealed the predatory protocol to be Celsius.

Simon Dixon of BnkToTheFuture proposed that Celsius could be saved in much the same way that Bitfinex was rescued in 2016. Even as Dixon continues his efforts to build support for his plan it is
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