Sam Bankman-Fried Beats Binance to Celsius Assets

Sam Bankman-fried, to the rescue of distressed crypto lending firms (Celsius Network).
Celsius filed for bankruptcy after revealing a deficit of around $1.2 billion in mid-2022.

The crypto exchange FTX is led by Sam Bankman-Fried, a crypto billionaire. FTX has considered bailing out the Celsius network by acquiring the lender’s assets. FTX has also obtained assets from brokerage Voyager Digital Ltd.

It remains uncertain as to which of Bankman-Fried’s crypto companies, the FTX crypto exchange or trading firm Alameda Research, will be bidding for some or all of Celsius’ assets.

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

Coincidentally this information was publicized when Alex Mashinsky released a statement about his resigning from the Celsius CEO post.

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

Said Mashinsky while explaining his decision.

The company’s operation hit the rocks in June when it halted withdrawals and finally declared bankruptcy after it realized that internal restructuring and staff layoffs would be insufficient in helping to solve its liquidity woes. Besides Celsius’s lending business it also owns large Bitcoin mining operations and a crypto custody business.

Celsius filed for bankruptcy after revealing 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.

Mashinsky’s resignation has come at a time when the company is neck deep into bankruptcy proceedings, and the former CEO said his exit would position him in a better place to help every stakeholder get the best out of the company in the end.

In what seems like a massive reorganization drive, Brett Harrison stepped down from FTX US president to move into an advisory role in the next few months

Until then, I’ll be assisting Sam [Bankman-Fried] and the team with this transition to ensure FTX ends the year with all its characteristic momentum,

said Harrison.

According to a source, FTX has been in secretive conversations with investors, planning on raising 1 billion. If this is to happen successfully, it would help the exchange hold its 32billion valuation amid a bear market. The deal has not been closed or publicized yet, the source adds that the conditions of the deal could still be changed.