FTX pulls out of deal to take over crypto lender Celsius

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Cryptocurrency exchange FTX has been considering providing financial support to troubled crypto lending site Celsius in exchange for acquiring the company.

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However, after reviewing Celsius’s financial position, FTX officials discovered a deficit of about $2 billion in the company’s balance sheet, according to The Block sources. FTX abandoned the takeover, deciding that there were no prospects for cooperation.

Following FTX’s refusal to acquire Celsius, the exchange giant is set to focus its efforts on acquiring rival Celsius crypto lender BlockFi. FTX is looking to take advantage of the opportunity to acquire the platform for $25 million, immediately after providing the company with a revolving line of credit in the amount of $250 million. At the same time, the market value of the platform is estimated at several billion dollars, and BlockFi management assures that the deal will definitely not take place for $25 million.

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Despite their financial problems, the Celsius team remains almost completely silent about development plans. The last official update was released by the exchange on June 19, when the company stated that its goal “is still to stabilize liquidity and operations, but this process will take time.”

The other day it became known that US law enforcement agencies prevented an attempt by Celsius CEO Alex Mashinsky to leave for Israel.

Source: Bits

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