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0 CommentsCrypto exchange FTX is reportedly considering bailing out Celsius Network by bidding on the bankrupt lender’s assets. Acquiring the assets of Celsius would imply FTX’s intent to save the lending firm, similar to what FTX US did for Voyager.
According to a Bloomberg report, FTX CEO Sam Bankman-Fried is considering the possibility to buy yet another bankrupt crypto company, Celsius. The report states that, according to undisclosed sources, FTX is undergoing an effort to raise $1 billion earmarked for the purchase.
Earlier, FTX was reportedly in talks with investors to raise $1 billion, which, if bagged, would help the exchange hold its $32 billion valuation.
Despite this alleged fund-raising effort, it isn’t entirely clear if Sam Bankman-Fried is aiming to purchase the crypto lender through FTX, or his other company, Alameda Research. However, an official statement from either party is pending for now.
For FTX, acquiring the assets of Celsius would imply the exchange’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion.
Interestingly, the news came out the same day Alex Mashinsky resigned as the CEO of Celsius.
“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” he said explaining his stepping down.
Celsius filed for bankruptcy after disclosing about $1.2 billion in deficit in mid-2022. In August, Reuters reported on Ripple’s interest in purchasing Celsius’ assets, which has since gone cold.
A day before, on Sept. 27, the FTX American subsidiary, FTX US, won the bid for the assets of embattled crypto brokerage firm Voyager Digital, approved by the UA Bankruptcy Court. Voyager hinted that its customers would eventually transition to the FTX platform after it finishes its Chapter 11 bankruptcy proceedings.
