Ripple Labs may be interested in buying assets from crypto lender Celsius Network. A Ripple spokesperson told the news agency that the company is “interested in learning about Celcius and its assets, and whether any may be relevant to our business.” The spokesperson further added that Ripple is “actively exploring” opportunities to conduct mergers and acquisitions that “will scale the company strategically.” That said, the spokesperson did not clarify whether Ripple would consider acquiring Celsius outright.
According to a Reuters report good, Ripple’s lawyers submitted three filings to participate in Celsius’ bankruptcy proceedings on August 5. However, those filings do not indicate why Ripple became involved in the case or whether its involvement is related to its acquisition plans. Reuters says Ripple is not a major creditor of Celsius.
It is also not clear that Celsius Would accept such a deal. Crypto lender Nexo proposed a deal similar to Celsius in June which was rejected.
Celsius initially froze the assets of its users in June citing “extreme market conditions”, followed by a few other crypto firms such as Voyager and Coinflex. It then quickly paid off its outstanding loans on various DeFi loans, recovered its collateral, and filed for bankruptcy one month later.
The filing revealed that the lending firm’s assets include cash, cryptocurrency, the company’s Celsius (CEL) token, and various digital assets within its custodial accounts, loans, and bitcoin mining business. However, when weighed against the firm’s liabilities, the company still reported a loss of $1.19 billion (about Rs 9,455 crore) on its balance sheet, and any money the company’s creditors were likely to get back. look serious,
Celsius is also not the only bankrupt company to have received such offers. Last month, FTX proposed a joint plan that would indemnify Voyager users to acquire Voyager Digital’s assets and digital asset loans. This was quickly rejected by Voyager, despite the ongoing relationship between the two firms.
Meanwhile, other companies have been more receptive. nexo Vault. offered to acquire in early July, and the two firms signed a contract to explore the possibility over a period of 60 days.