FTX’s CEO Reveals Plans For Celsius Bid

Twitter icon  •  Published för 1 år sedan  •  Nikolas Sargeant

Sam Bankman-Fried has spoken openly about his pursuit of bankrupt crypto lender Celsius, having recently acquired the assets of Voyager Digital, closing out a long, drawn-out saga

Sam Bankman-Fried has spoken openly about his pursuit of bankrupt crypto lender Celsius, having recently acquired the assets of Voyager Digital, closing out a long, drawn-out saga. 

The FTX CEO and co-founder Sam Bankman-Fried has shared details of how his firm will purchase Celsius’ assets. The information has come to light following FTX US paying a “fair market price” for Voyager Digital’s assets, with the company aiming to follow a similar path with Celsius. 

It was recently revealed that Bankman-Fried closed the deal for Voyager’s assets for $1.3 billion via auction last week. FTX US had been chasing this deal for some time, with Binance entering the bidding process at one point, since the initial filing for bankruptcy back in July this summer. 

In response to a tweet from BnkToTheFuture founder Simon Dixon claiming FTX was “raising finance at a $32Billion valuation” to purchase Celsius’ assets at “cents on the dollar,” the FTX CEO revealed the company’s bid will be based on a “fair market price, no discounts.”

He went on to state that FTX “isn’t to make money buying assets at cents on the dollar,” he went on to discuss the company’s long-term vision: “[The] goal isn't to make money buying assets at cents on the dollar, it’s to pay $1 on the $1 and get the $1 back to customers. If we were to get involved in Celsius, it would be the same.”

Celsius Deal More Delicate

Little has been said about what will happen to Voyager Digital customers. However, just after the approximate $1.4 billion deal went through, FTX US hinted that customers would be able to move their assets to its platform and begin trading from there, with FTX stating “will enable customers to trade and store cryptocurrency after the conclusion of the company’s chapter 11 cases.“

The case for Celsius is quite different, as the company has been at a loss for a long time, and the situation has only been compounding. There is a possibility the firm will auction off its assets, like Voyager, or the company could look to carry out a customer repayment scheme.

While the outcome is unclear at this stage, we won’t find out much more until the Celsius bankruptcy case plays out. It’s currently being reviewed by an independent examination, which will determine the firm’s financial options scope. 

Numerous regulators have objected to Celsius selling off its stablecoin holdings. One of which was the Department of Justice, which objected to the firm’s motion to offer withdrawals to certain customers until the investigation was complete. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.