Reports Suggest FTX Considering Bid For Celsius Network Assets

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FTX has finally closed out the Voyager Digital saga, acquiring the assets of the bankrupt crypto brokerage firm, with the US arm of the crypto firm completing the deal

FTX has finally closed out the Voyager Digital saga, acquiring the assets of the bankrupt crypto brokerage firm, with the US arm of the crypto firm completing the deal. Now that firm is reportedly considering a bid for the assets of the bankrupt cryptocurrency lending platform provider Celsius Network LLC.

Another Asset Acquisition For FTX

According to a report from Bloomberg, citing a person familiar with the matter, FTX’s CEO and co-founder Sam Bankman-Fried is interested in buying up the insolvent Celsius. For now, it’s unclear where the bid will come from, with some speculating it may come from Bankman-Fried’s trading firm Alameda Research. 

The same source also claimed that FTX is in the process of starting a $1 billion funding round to raise funds for further investments as the crypto winter continues, though the details have not been made public. The success of the funding round may be the trigger for Bankman-Fried to buy up Celsius. 

The day before FTX’s interest in Celsius went public, Celsius Chief Executive Officer Alex Mashinsky resigned from the company, citing his role as CEO was an “increasing distraction” for Celsius. Mashinsky released a statement saying, “I am very sorry about the difficult financial circumstances members of our community are facing,” he went on to say, “I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy.” The ex-CEO believes an FTX takeover could be the best outcome for Celsius creditors. 

FTX Continues To Expand 

Rumors of a bid for Celsius come as no surprise, given how active the company has been in buying up crypto assets and expanding its operations abroad. In June, FTX US inked a deal with BlockFi Inc., offering them rolling credit of $250 million to keep the company afloat. On top of that, with a vision for the future, FTX agreed to an option to buy the lending platform for $240 million. 

Since the crypto crash, BlockFi has struggled to gain any traction in the industry, with many losing trust in the platform. The market doesn’t provide much support for lending platforms like Celsius, BlockFi, and Nexo. 

FTX US recently won an auction to buy Voyager’s assets for approximately $1.4 billion after going through a three-month back and forth, which included bids from the company’s primary rival Binance. Voyager customers will soon be able to transfer their digital assets to the FTX US platform and resume trading. 

Voyager filed for bankruptcy protection on July 6, following the collapse of Three Arrows Capital days earlier. Less than three months later, on October 19, a purchase agreement was signed, and FTX took over.

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.