Exclusive

Celsius pulled half a billion dollars out of Anchor Protocol amid Terra chaos

Quick Take

  • Blockchain analysis shows Celsius made substantial deposits to Terra’s Anchor Protocol starting in December.
  • But the same analysis and comments from a person close to the situation suggest the funds were rapidly withdrawn in their entirety earlier this week. 

Crypto lending business Celsius had at least half a billion dollars of funds parked in Anchor Protocol but appears to have pulled all of it out over a frantic 24 hour period earlier this week. 

Wallets controlled by Celsius sent at least 261,000 ETH ($535 million at current prices) to Anchor Protocol over the past five months, according to analysis conducted by The Block Research and Hoptrail, a blockchain data firm. The same analysis and comments from a person close to the situation suggest, however, that Celsius was able to withdraw the entirety of those funds. 

Celsius allows retail investors to earn interest on their crypto holdings, advertising interest rates of up to 17%. According to its website, the company serves 1.7 million customers. 

Terra’s Anchor Protocol has offered yields of up to 20% to depositors of TerraUSD (UST), the Terra-native algorithmic stablecoin. The Terra ecosystem was thrown into chaos earlier this week when UST de-pegged sharply from the price of one US dollar,