Cryptocurrency exchange FTX, led by crypto millionaire Sam Bankman-Fried (SBF), is reportedly considering bailing out Celsius Network by making an offer for the bankrupt lender’s assets. Coincidentally, the information came to light on the same day that Alex Mashinsky stepped down as CEO of Celsius.
“I am sorry that my role as CEO has become an increasing distraction, and I am deeply sorry for the difficult financial circumstances that members of our community are facing,” Mashinsky said in explaining his decision. For FTX, acquiring the assets of Celsius would imply the exchange’s intention to save the lending company, similar to what FTX US did for Voyager by landing the winning bid of approximately $1.4 billion.
Bloomberg reported FTX’s interest in Celsius Network based on information from a person familiar with SBF trading. However, at the time of writing this article there had been no official statement from either party.
News broke on September 22 that FTX was in talks with investors to raise $1 billion, which, if achieved, would help the stock market maintain its $32 billion valuation amid a bear market.
Celsius filed for bankruptcy after disclosing a shortfall of about $1.2 billion by mid-2022. In August, Reuters reported Ripple’s interest in buying Celsius assets, which has since cooled off.
FTX has not yet responded to Cointelegraph’s request for comment.
In what looks like a major restructuring, Brett Harrison stepped down from being president of FTX US to an advisory role in the coming months.
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
“Until then, I will help Sam Bankman-Fried and the team through this transition to ensure that FTX ends the year with all the momentum that it is known for,” Harrison said.
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