Similar to how FTX US saved Voyager by receiving the highest bid of almost $1.4 billion, acquiring Celsius’ assets would indicate that FTX intended to rescue the lending company.
FTX, a cryptocurrency exchange run by Sam Bankman-Fried (SBF), a crypto billionaire, is reportedly thinking about buying assets from the insolvent lender Celsius Network in order to save it. Coincidentally, the news was released on the same day that Alex Mashinsky submitted 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,” said Mashinsky while explaining his decision.
FTX’s interest in Celsius Network was mentioned by Bloomberg in a story based on information provided by a source familiar with SBF’s deal-making. But as of this writing, neither party has released an official comment.
On September 22, it was discovered that FTX was in discussions with investors to raise $1 billion. If successful, this funding would help the exchange maintain its $32 billion valuation despite the bear market.
Midway through 2022, Celsius disclosed a $1.2 billion shortfall and filed for bankruptcy. Ripple’s interest in acquiring the assets of Celsius was first mentioned by Reuters in August but has since cooled.
In what appears to be a significant reorganization effort, Brett Harrison resigned as the president of FTX US and will take on an advisory role in the coming months. He plans to help Sam Bankman-Fried and the team with this transition so that FTX can finish the year with all of its customary momentum.