Celsius Network, a crypto lender, deposited a total of $59.4 million worth of cryptocurrencies to institutional crypto exchange FalconX on Monday. This move was approved by a U.S. bankruptcy court late last month. According to crypto analytics firm Kaiko, this could lead to a decrease in the tokens’ prices due to decreased liquidity.
Blockchain data from Arkham Intelligence shows that Celsius-controlled crypto wallets sent $13.6 million in Polygon’s MATIC, $10.7 million in Chainlink’s LINK, $7.3 million in AAVE, $8.5 million in LINK, $7.8 million in Synthetix’s SNX, $3 million in Binance’s BNB token, and more than a million dollars’ worth of ZRX, 1INCH, and Tether’s gold-pegged stablecoin XAUT.
The decision to convert the tokens worth $170 million to the two largest cryptocurrencies by market cap was made on June 30. This followed Celsius filing for bankruptcy protection last summer after halting withdrawals. Its former chief executive, Alex Mashinsky, was recently arraigned on fraud charges by the Department of Justice (DOJ).
The maneuver could apply significant sell pressure on the tokens’ prices due to deteriorated liquidity, said Kaiko in a report last week. Recently, Celsius moved some $64 million of tokens out from custody wallets to its over-the-counter deposit wallet, foreshadowing potential token sales.