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FTX Abandoned Deal with Celsius After Seeing Their Financials
Summary: Crypto exchange operator FTX walked away from a lead with crypto lender Celsius, after looking at their troubling finances, according to a report by The Block. One of the sources said that Celsius had a $2 billion hole in their balance sheet. Celsius has been in serious danger since freezing all withdrawals, Swaps and transfers ...
Crypto exchange operator FTX walked away from a lead with crypto lender Celsius, after looking at their troubling finances, according to a report by The Block. One of the sources said that Celsius had a $2 billion hole in their balance sheet.
Celsius has been in serious danger since freezing all withdrawals, Swaps and transfers between accounts on June 12, citing “extreme market conditions.” Their clients have been actionless for almost three weeks as a result.
Despite the financial crisis and their customers yearning for updates, Celsius has remained rather mute regarding the whole issue, with their last update coming on June 19. They asked their clients to remain patient as they continued to stabilize their liquidity and operations. “This process will take time,” the announcement said.
Since their June 19 announcement, reports surfaced that Celsius was preparing for bankruptcy after hiring restructuring advisers from the firm Alvarez & Marsal. However, despite these indicators, Celsius is resisting the recommendation by their lawyers to file for bankruptcy.
Allegedly, a Twitter user said that she called Celsius to get an update on their status and they responded with reassurance. They noted they were very aware of the “bad publicity” they were receiving, but assured the Twitter user her funds were safe and they were just trying to establish liquidity.
Celsius’ has most likely refused to comment on the current state of affairs given that it could potentially turn into a legal matter. Celsius is convinced that their current clients would prefer that the crypto lender would not declare bankruptcy.
Celsius was founded in 2017 by CEO Alex Mashinsky, which raised $750 million last year for a valuation of $3.5 billion.
While FTX walked away from a potential Celsius deal, that has not stopped FTX from scouring the market looking for other companies to acquire. At the moment, they are seeking to acquire BlockFi after previously providing a $250 million revolving credit line to the firm.
Author: Tyler Irvin
Tags: BlockFi,Celsius,FTX
Link: FTX Abandoned Deal with Celsius After Seeing Their Financials [Copy]
