Bahamian cryptocurrency exchange, FTX, is reportedly eyeing for another round of bidding to acquire bankrupt crypto lender, Celsius Network’s assets. The crypto exchange led by billionaire Sam Bankman Fried is considering a bailout proposal similar to what FTX US did for Voyager Digital LLC.
Sam Bankan-Fried (SBF), hopes to continue his rescue proposals to save troubled crypto companies amid the market rout. Yesterday, FTX US, won an auction bid to take over insolvent crypto lender Voyager Digital’s assets. Earlier in June, the crypto billionaire announced a $250 million loan to BlockFi, after the crypto lender suffered about $80 million in losses.
FTX Eyeing to Salvage Sinking Crypto Companies
According to a report, a person familiar with this deal-making has revealed that FTX is in the process to consider a bidding proposal for the assets of bankrupt lender Celsius Network. The speculation comes on the heels of, Alex Mashinsky, CEO of Celsius, resigned citing “difficult financial circumstances”. Celsius is also considering a restructuring process to navigate its way out of the financial tumoil.
However, it’s unclear if Bankman-Fried’s crypto companies, FTX crypto exchange, or trading firm Alameda Research are considering bidding for some or all of Celsius’s assets. In a Bloomberg Crypto Summit earlier, SBF specified that the goal of bailing out troubled companies is to be “a good, constructive actor in this space”. He added that a healthier industry environment would help the growth of his own firms.
Celsius’s Ongoing Problems
The ongoing crypto meltdown has snowballed many companies into a state of utter chaos. Bigwigs of the crypto industry have either filed for bankruptcy or announced mass layoffs. Even, one of the biggest crypto lenders in the world, Celsius, couldn’t salvage its sinking ship in this financial predicament and filed for ‘Chapter 11 bankruptcy. The crypto lender had earlier halted withdrawals and transfers between user accounts citing ‘extreme market conditions’.
Moments ago, @CelsiusNetwork filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring. https://t.co/vf5wsT6TMp
— Celsius (@CelsiusNetwork) July 14, 2022
Recently, Celsius had asked for approval to sell off its stash of stablecoins to fund its operations. In the filed application, the company claimed it owns around $23 million worth of stablecoins spread across different countries, like the US, the UK, and other EU regions. Celsius is seeking to sell the coins and generate some cash to cover its own operational costs.
Previously, Judge Martin Glenn had allowed Celsius to mine and sell Bitcoin (BTC). However, the company stated that BTC mining would not bring immediate profits as it needs investment for the mining setup.
