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August 10, 2022

Ripple To Buy Celsius Network’s Assets

The business behind the cryptocurrency XRP, Ripple Labs, is a possible acquirer of Celsius network’s assets. According to a report by Reuters, the blockchain payments startup is interested in Celsius’ assets, although its precise intentions are unclear.

However, neither company has issued a formal statement on their interest in purchasing Ripple Celsius assets as of yet. The Celsius network filed for bankruptcy last month. This followed the June suspension of withdrawals and transfers from user accounts.

A spokeswoman for Ripple was reported in the newspaper as stating the business is interested in possibly buying the crypto lender’s assets. According to the article, Ripple is investigating whether Celsius’ assets align with its objectives. Nevertheless, the Ripple spokesperson declined to comment on whether Ripple is really interested in purchasing Celsius.

“We are interested in learning more about Celsius and its assets to see whether any are applicable to our company. Ripple has maintained its exponential growth and is aggressively seeking M&A options to strategically develop the business.

While announcing its reorganization plans, Celsius said that its assets were worth around $4.3 billion. It revealed liabilities of $5.5 billion and assets of $4.3 billion, including $600 million in CEL tokens worth $170 million.

Ripple’s potential acquisition of Celsius’s assets might provide regular investors with financial relief. Celsius has previously said that it was exploring selling assets to address its financial needs.

To satisfy financial commitments, the firm will also examine asset sales and third-party investment alternatives, according to the statement. It was stated at the time that the overarching purpose is to maximize profits for stakeholders.

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In the meanwhile, the U.S. Department of Financial Protection and Innovation has lately begun to monitor the cryptocurrency lender. The agency said in an order that Celsius CEO Alex Mashinsky “committed substantial misrepresentations and omissions in the offering of crypto interest accounts.” The underestimation of the hazards of depositing digital assets with Celsius was especially egregious, according to the report.

“Celsius provided accounts that let clients to collect income on digital assets placed with Celsius without first classifying such accounts as securities in accordance with California law.”