Celsius’ Debt Scares FTX away

Crypto exchange operator FTX has walked away from making a deal with troubled crypto lender Celsius.

FTX had began talks with Celsius about providing financial support or making an acquisition.

Yet, FTX decided against the deal after looking at Celsius’s finances.

Celsius had a $2 billion hole in its balance sheet and FTX found the company difficult to deal with.

Celsius has been fighting for survival since freezing all withdrawals on June 12, citing “extreme market conditions.”

Clients’ funds have remained stuck ever since. Celsius claimed 1.7 million customers and around $12 billion in assets under management in May.

Celsius is resisting a Chapter 11 bankruptcy filing — a recommendation from its lawyers.

Celsius was founded in 2017 by CEO Alex Mashinsky and grew quickly by promising attractive interest rates to users.

While FTX decided to walk away from Celsius, the exchange giant is still interested in rival crypto lender BlockFi.

FTX is seeking to acquire BlockFi outright after providing a $250 million revolving credit facility to the firm.

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