Sep 28, 2022 Muhammad Hamza Afzal

FTX mulls bailing out Celsius via asset bid

Crypto exchange FTX is still contemplating bailing out Celsius Network, by bidding on the bankrupt crypto lender’s assets. It remains to be seen whether FTX will bid for some or all of Celsius’ assets.

This isn’t the first time Sam Bankman-Fried-led firm has come forward to bail out a distressed crypto company. Earlier this week, FTX US acquired assets of Voyager Digital Ltd, the bankrupt brokerage, in a $1.4 billion winning bid.  

The development happened on the same day as Celsius CEO Alex Mashinsky’s resigned. Expressing remorse in his resignation letter, Mashinsky said, “I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing” 

Mashinsky co-founded Celsius Network along with Daniel Leon in 2017. It became one of the leading crypto lending platforms. But things went south for Celsius Network earlier in 2022, resulting in the halting of operations in June 2022. Celsius filed for bankruptcy after disclosing a deficit of nearly $1.2 billion in July 2022.   

Tuesday sun also saw Brett Harrison, President of FTX US, stepping down from his role to an advisory capacity for the cryptocurrency exchange. Harrison’s decision is being viewed in light of his now-deleted tweets, which angered US regulator Federal Deposit Insurance Corporation (FDIC) in August 2022.  

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