The crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried, wants to save the Celsius Network.
Acquiring assets
Bankman-Fried reportedly plans to do this by bidding on the bankrupt lender’s assets. The information came out the same day Alex Mashinsky stepped down as CEO of Celsius.
I regret that my continued role as CEO has become increasingly confused. In addition, I deeply regret the difficult financial circumstances facing members of our community.
– Mashinsky
For FTX, acquiring Celsius’s assets would imply the exchange’s intent to bail out the lender. This is similar to the situation at FTX US when it tried to rescue Voyager and offered it $1.4 billion.
Talking to investors
On September 22, FTX will enter into talks with its investors to raise $1 billion. This would help the exchange maintain its $32 billion valuation amid a bear market.
Celsius has filed for bankruptcy after it ran a deficit of about $1.2 billion in mid-2022. In August, Reuters reported on Ripple’s interest in buying Celsius’s assets.
Brett Harrison has since stepped down as president of FTX US and will assume an advisory role in the coming months.
1/ An announcement: I’m stepping down as President of @FTX_Official. Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.
— Brett Harrison (@BrettHarrison88) September 27, 2022
Until then, I will be assisting Sam Bankman-Fried and the team in this transition to ensure that FTX close the year with momentum.
– Harrison.