Ripple Labs, the blockchain payment company behind XRP, may be interested in buying assets owned by insolvent crypto lending firm Celsius.
A company spokesperson said Reuters that Ripple is “interested in learning more about Celsius and its assets, and whether any might be relevant to our business”.When asked if Ripple plans to acquire Celsius entirely, the spokesperson declined to say. CEL, the native utility token of the Celsius platform, rose 23% on Wednesday following the news.
Celsius frozen the assets of its users in June due to “extreme market conditions,” followed by a handful of other crypto companies like Traveler and CoinFLEX. He then hastens paid its unpaid debts on various DeFi loans, recovered its collateral and filed for bankruptcy a month later.
Filings revealed that the loan company’s assets included cash, cryptocurrency, the company’s own Celsius (CEL) tokens, and various digital assets in its custody accounts, loans, and bitcoin mining operations. .
However, compared to the company’s liabilities, the company still ran a $1.19 billion deficit on its balance sheet, and the chances of the company’s creditors getting some of their money back look bleak.
The filings showed that Ripple was not one of Celsius’ main creditors. Still, the company filed documents seeking representation in the lender’s bankruptcy proceedings last week.
Ripple did not immediately respond to Decryptrequest for additional comment on a possible acquisition agreement, although a spokesperson said Reuters that the company “actively pursues M&A opportunities to strategically scale the business”. Ripple was valued at $15 billion in January after buying back shares of its Series C raise in December 2019. According to a report by the company in July, it sold $408 million worth of XRP from April to June, much more than the $273.27 million. it sold out in the previous quarter.
Stay up to date with crypto news, get daily updates delivered to your inbox.