According to reports, cryptocurrency exchange FTX, run by crypto millionaire Sam Bankman-Fried (SBF), is thinking about purchasing assets from the insolvent lender Celsius Network in order to save it.
The announcement coincidentally came the same day that Alex Mashinsky tendered his resignation as 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.”
By purchasing Celsius’s assets, FTX would be signaling its intention to salvage the loan company, just like FTX US did for Voyager when it secured the winning bid of almost $1.4 billion.
FTX’s previous interest in Celsius
Bloomberg reported on Bankamn’s interest in Celsius Network based on information from a source familiar with SBF’s deal-making. But as of this writing, neither side has released an official comment.
It was learned on September 22 that FTX was in talks with investors about raising $1 billion. If successful, this funding would allow the exchange to maintain its $32 billion value despite the bear market.
Celsius announced a $1.2 billion loss at the halfway point of 2022 and declared bankruptcy. Reuters initially reported in August that Ripple was interested in buying the assets of Celsius, but that interest has since diminished. Brett Harrison has resigned from his position as president of FTX US and will shortly take on an advisory role as part of what looks to be a big reorganization effort.
Fried’s digital asset exchange, FTX US, which was created by billionaire Sam Bankman, won the bidding war for the assets of the shuttered cryptocurrency company Voyager Digital Ltd.
The agreement is worth around $1.4 billion, according to a statement published by Voyager Digital on Monday in New York, which is made up of an “additional compensation” of about $111 million and the $1.3 billion market value of each cryptocurrency held by the bankrupt business.
Customers will be allowed to transfer to the FTX US platform after the bankruptcy process is over, according to Voyager, who also announced that the acquisition deal would be filed to the court on October 19 for approval.