FTX reportedly considering bailing out Celsius via asset offering

Acquiring Celsius's assets would imply FTX's intention to rescue the loan company, similar to what FTX US did for Travel by getting the winning bid of around $1.4 billion.

Crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried (SBF), is reportedly considering bailing out Celsius Network by bidding on the bankrupt lender's assets. Coincidentally, the information came out the same day that Alex Mashinsky resigned as CEO of Celsius.

“I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the financial hardship our community members are facing,” Mashinsky said while explaining his decision. For FTX, acquiring Celsius's assets would imply the exchange's intention to rescue the loan company, similar to what FTX US did for Voyager by securing the winning bid of around $1.4 billion. /p>

Bloomberg reported on FTX's interest in Celsius Network based on information from someone familiar with making deals with SBF. However, an official statement from either party is pending at the time of writing.

On Sept. 22, FTX was reportedly in talks with investors to raise $1 billion, which, if bagged, would help the exchange maintain its $32 billion valuation in a bear market.

Celsius filed for bankruptcy after disclosing a deficit of around $1.2 billion in mid-2022. In August, Reuters reported on Ripple's interest in buying the assets of Celsius, which has since cooled.

FTX has not yet responded to Cointelegraph's request for comment.

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