Embattled lending platform Celsius has transferred almost 25,000 Wrapped Bitcoin (wBTC), value $528.9 million to crypto trade FTX, prompting issues from some in the neighborhood about whether or not a dump might quickly observe.

The large switch to the trade comes after the lending platform paid off its remaining $41.2 million of debt to Maker (MKR) protocol, liberating up its mortgage’s total wBTC collateral.

Nonetheless, the group is not sure what to make of the switch, with some fearing {that a} dump of the wBTC on the trade might quickly observe, pushing Bitcoin costs down.

Others have been extra hopeful that the transfer could also be in preparation for Celsius to swap their wrapped Bitcoin for BTC, which can be a great signal for depositors who’ve been hoping for Bitcoin withdrawals to ultimately reopen on the Celsius platform. Bitcoin is up 8% up to now 24 hours to commerce above $22,100, suggesting market individuals are taking the information of their stride.

The 21,962 WBTC unlocked from paying off the remaining DAI mortgage has already discovered its technique to FTX…

that did not take lengthy…

Incoming $BTC dump? https://t.co/A9B9YaLQ1W#CelShortSqueeze = #CelPumpAndDump

Not your keys, not your crypto pic.twitter.com/V2edblhmXZ

— Airdawg (@Colwellinvestor) July 7, 2022

The 25,000 wBTC despatched to FTX follows the information earlier in the present day that 150,000 BTC could also be doubtlessly launched into the market as Mt.Gox collectors get their BTC again after an eight-year wait.

To date, each Celsius and CEO Alex Mashinsky have remained radio silent about any motion of funds.

Crypto lawyer Joni Pirovich, Principal of Blockchain & Digital Belongings advised Cointelegraph on July 7 that Celsius’ reimbursement of its mortgage place with Maker will finally help its clients.

Bombshell allegations of fraud as KeyFi takes Celsius to court docket

“Maker protocol depends on overcollateralized mortgage positions, so the mortgage reimbursement of US$41 million value of DAI launched 21,962 WBTC of capital which is now obtainable to fulfill buyer withdrawal requests.”

Pirovich added that even when Celsius finally ends up submitting for chapter, that repaying the mortgage place and withdrawing collateral might enhance the place of shoppers.

“The query is what’s going to Celsius do with the withdrawn collateral? Maintain it in reserve for purchasers or danger it to commerce and on-lend.”