FTX reportedly considers bailing out Celsius via asset bid

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Acquiring the assets of Celsius would imply FTX’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion.

Crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried (SBF), is reportedly considering bailing out Celsius Network by bidding on the bankrupt lender’s assets. Coincidently, the information came out the same day Alex Mashinsky resigned as the 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. For FTX, acquiring the assets of Celsius would imply the exchange’s intent to save the lending firm, similar to what FTX US did for Voyager by securing the winning bid of approximately $1.4 billion.

Bloomberg reported on FTX’s interest in Celsius Network based on insights from a person familiar with SBF’s deal-making. However, an official statement from either party is pending at the time of writing.

On Sept. 22, FTX was reportedly found to be in talks with investors to raise $1 billion, which, if bagged, would help the exchange hold its $32 billion valuation amid a bear market.

Celsius filed for bankruptcy after disclosing about $1.2 billion in deficit in mid-2022. In August, Reuters reported on Ripple’s interest in purchasing Celsius’ assets, which has since gone cold.

FTX has not yet responded to Cointelegraph’s request for comment.

Related: British regulator lists FTX crypto exchange as ‘unauthorized’ firm

In what seems like a massive restructuring drive, Brett Harrison stepped down from FTX US president to move into an advisory role in the next few months.

“Until then, I’ll be assisting Sam [Bankman-Fried] and the team with this transition to ensure FTX ends the year with all its characteristic momentum,” said Harrison.

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