Tuesday, September 27, 2022

Celsius filed bankruptcy, but Ripple showed interest in buying

Ripple Labs may be interested in buying assets of cryptocurrency lender Celsius Network. A Ripple spokesperson told a news agency that the company is “interested in learning more about Celcius and its assets, and whether some of this may add up to our business.” The spokesperson further added that Ripple is “actively exploring” merger and acquisition opportunities that will “strategically enhance the company.” However, the spokesperson did not clarify whether Ripple would consider fully authorizing Celsius or buying some of its assets.

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A Reuters report accordingRipple’s lawyers submitted three filings on August 5 to participate in Celsius’ bankruptcy proceedings. However, those filings do not indicate why Ripple became involved in the case or whether its involvement is related to its acquisition plans. Reuters says Ripple is not a major creditor of Celsius.

It is not yet clear whether Celsius will accept such a deal. Crypto lender Nexo proposed a deal similar to Celsius in June, which was rejected.

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Celsius initially froze its users’ assets in June citing “extreme market conditions”, followed by a few other crypto firms such as Voyager and CoinFLEX. Thereafter, the company paid off its outstanding loans on various DeFi loans, recovered its pledged assets, and filed bankruptcy a month later.

The filing revealed that the lending firm’s assets include cash, cryptocurrencies, the company’s Celsius (CEL) tokens, and various digital assets within its custody accounts, loans, and bitcoin mining business. However, when these assets were weighed against the firm’s liabilities, the company still reported a loss of $1.19 billion (about Rs 9,455 crore) on its balance sheet. Now, the chances of the company’s creditors getting any of their money back look negligible.

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