Crypto lender Nexo proposes buyout of rival, Celsius

Digital asset manager Nexo has tendered a buyout proposal for certain liquid assets of its rival Celsius.

The buyout proposal is Nexo’s responce to the news Celsius pausing withdrawals.

Nexo took to Twitter on Monday morning to post a letter of intent outlining its “potential interest” to acquire “certain remaining qualifying assets, mainly collateralized loan receivables secured by corresponding collateral assets, brand assets and customer database of the business … of Celsius Network LLC and Celsius Lending LLC.”

According to Nexo, the offer will remain in effect for one week—until 4:30 am UTC on June 20, 2022—unless accepted or rejected by Celsius, or withdrawn prior to that time.

New York-based Celsius had announced that it is freezing all withdrawals and transfers between accounts late on Sunday night.

The firm claimed that it is taking this action “to put Celsius in a better position to honor, over time, its withdrawal obligations.”

CEL, the token underpinning the Celsius platform, responded to the announcement by plunging 70% in just one hour from a prior high of $0.49 to $0.15.

At time of publication, CEL was changing hands at just under $0.19, per CoinMarketCap.