Crypto Lending Platform Celsius Repays $143 Million Loan in Maker DAO Protocol

Crypto lending platform Celsius Network has paid out $142.8 million in the stablecoin DAI this month to repay a loan in the DeFi protocol Maker DAO.

As a result of this, the WBTC collateral liquidation price for Celsius has been reduced to less than $5,000.

The platform suspended withdrawals, exchanges and transfers between accounts on June 13 “due to extreme market conditions.” Analysts suggested the real reason for what happened was a “liquidity crisis.”

The company’s top investors have reportedly refused to give it additional funding.

Georgetown University law professor Adam Levitin has said the Celsius leadership was betting on a “resurrection gamble.” According to him, the bankruptcy of the company is almost inevitable.