Digital Assets: Ripple Labs Eyeing Pieces Of Celsius In Bankruptcy Wreckage

August 10, 2022 | Digital Assets, News
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A Ripple spokesman confirmed this to Reuters.

Ripple Labs, the blockchain payments company that created the XRP cryptocurrency, is interested in purchasing assets of Celsius Network, the crypto lender that was forced into bankruptcy amidst the meltdown in the crypto assets market. Ripple itself is engaged in a high stakes legal battle with the SEC which has charged the company and executives for conducting a $1.3 billion unregistered securities offering by selling XRP. (Reuters)

“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business,” the Ripple spokesperson told Reuters.

The person also confirmed that Ripple “is actively looking for M&A opportunities to strategically scale the company,” as it remained unscathed by the turmoil in the crypto market.

Celsius bankruptcy

Celsius assets that form a part of the bankruptcy proceedings include digital assets held in custody accounts, loans, a bitcoin mining business, the company’s own CEL token and bank cash and cryptocurrencies that the firm has on hand. Last week, Ripple lawyers applied for, and were granted, permission to join the insolvency proceedings even though the company is not among key creditors of Celsius.

Celsius entered bankruptcy last month and filings showed a $1.19 billion deficit in its accounts. Prior to that, in June, the company froze all withdrawals, transfers, swaps citing “extreme market conditions.”

Billionaire Sam Bankman-Fried’s FTX had walked away from a deal with Celsius after seeing the state of its finances, The Block reported in June.

Sources said FTX began talks with the crypto lender about providing financial support or making an acquisition but decided against proceeding further on account of a $2 billion hole in its balance sheet; FTX also found the firm difficult to deal with.

Related Story: Regulators Investigating Withdrawals Ban By Celsius

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