Ripple Labs is taking care of the assets of the bankrupt crypto lending platform Celsius. This news has been a source of hope for afflicted altcoin investors.
Ripple interested in buying bankrupt altcoin project
Ripple Labs, the company behind the cryptocurrency XRP, is a potential buyer of Celsius’s assets. According to a Reuters report, Blockchain payment company is interested in the assets of Celsius. However, there is no clarity on the plans. No official comment has been made on the purchase interest of Ripple Celsius assets from either company so far. Celsius filed for bankruptcy last month. The bankruptcy came after it stopped withdrawals and transfers from user accounts in June.
.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
— Celsius (@CelsiusNetwork) June 13, 2022
Is Ripple buying Celsius’ assets?
In the report, a Ripple spokesperson said the company is interested in potentially acquiring Celsius’ assets. Meanwhile, the report also states that Ripple is investigating whether Celsius’ assets will be relevant to its interests. However, the Ripple representative did not comment on whether Ripple was rightly interested in acquiring Celsius. The descriptions include:
We are interested in learning about Celsius and its assets and whether any of them might be relevant to our business. Ripple has continued to grow exponentially, actively seeking merger and acquisition opportunities to strategically scale the company.
Asset sales plans
When announcing plans to restructure Celsius, the company says it has approximately $4.3 billion in assets. It announced $5.5 billion in debt and $4.3 billion in assets, $600 million in CEL tokens, $170 million. Ripple’s interest in Celsius assets is quite positive as the acquisition could bring financial relief to individual investors. Celsius has already said that it is considering an asset sale to meet its financial needs.
The company will also consider asset sales and third-party investment opportunities to meet its financial obligations.” The overall goal is to maximize returns for stakeholders. Meanwhile, Celsuis has recently fallen under the radar of the US Department of Financial Protection and Innovation. In a warrant, the department said that Celsius CEO Alex Mashinsky “made material misrepresentations and omissions in the offering of crypto-interest accounts.” Statements of data included in descriptions include:
Celsius offered accounts that allow customers to earn interest on cryptocurrencies deposited in Celsius without qualifying those accounts as California law securities.
As quoted by Kriptokoin.com, Celsuis suspended withdrawals on June 13. The company is currently still not in a position to meet the funds of its investors. This bankruptcy came amid the sales that followed the Terra crash.
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