Ripple shows interest in assets from troubled crypto lender Celsius, may acquire it

Ripple Labs may be interested in buying the assets of embattled crypto lender Celsius Network. A spokesperson for Ripple told a news agency that the company was “interested in learning more about Celsius and its assets, and whether any might be relevant to our business.” The spokesperson went on to say that Ripple is “actively seeking” opportunities to complete mergers and acquisitions that will “strategically grow the business.” That said, the spokesperson did not elaborate on whether Ripple would consider acquiring Celsius in its entirety.

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

It is also unclear whether Celsius would agree to such a deal. Crypto lender Nexo offered a similar deal to Celsius in June, which was rejected.

Celsius initially froze its users’ assets in June citing “extreme market conditions”, followed by a handful of other crypto companies like Voyager and CoinFLEX. He then hastily repaid his outstanding debts on various DeFi loans, collected his collateral, and filed for bankruptcy a month later.

Filings revealed that the loan company’s assets included cash, cryptocurrency, the company’s Celsius (CEL) tokens, and various digital assets in its custodial accounts, loans, and bitcoin mining operations. However, compared to the company’s liabilities, the company still recorded a deficit of $1.19 billion (about Rs 9,455 crore) in its balance sheet, and the chances of the company’s creditors recovering their money look dark.

Celsius is also not the only insolvent company to have received such offers. Last month, FTX proposed a joint plan that would allow it to acquire Voyager Digital’s assets and digital asset loans while compensating Voyager users. It was quickly rejected by Voyager, despite the continued relationship between the two companies.

Meanwhile, other companies have been more receptive. Nexo offered to acquire Vauld in early July and the two companies signed a contract to explore the possibility over a 60-day period.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button