FTX’s Bankman-Fried Considering Celsius Bid

• Sam Bankman-Fried’s FTX recently won an auction for Voyager assets
• Bankman-Fried had previously declined to bail out Celsius Network
• The former CEO of Celsius Network resigned after the company’s creditor committee requested his removal.

According to a person who is familiar with Sam Bankman-Fried’s deal-making, the crypto billionaire who has been bailing out troubled companies in recent months is considering making a bid for the assets of Celsius Network, a bankrupt lender.

According to the same individual, FTX is also in the process of raising a $1 billion funding round. The current round has not yet concluded or been made public.

Celsius, which filed for bankruptcy in July, owns large Bitcoin mining operations and a crypto custody business in addition to its lending business.

Celsius received multiple offers of fresh cash to help fund its restructuring process

It is not clear whether Alameda Research or the FTX cryptocurrency exchange owned by Bankman-Fried is interested in making a bid for all or any of Celsius’s assets.

According to data from CoinGecko, Cel, the token for Celsius, rose as much as 9.9% in response to the development before retreating once more.

In an agreement worth approximately $1.4 billion, Bankman-Fried had already acquired the assets of Voyager Digital Ltd., a failing cryptocurrency brokerage.

Earlier this year, FTX supported the cryptocurrency platform BlockFi and was looking into the possibility of acquiring 

Robinhood Markets Inc., a company in which Bankman-Fried owns a stake. It is estimated that he owns nearly all of Alameda and more than half of FTX US.

Since Celsius’s CEO Alex Mashinsky resigned on Tuesday, the company and its creditors are considering a wide range of options, including liquidation and restructuring. The business claimed in August that it had received multiple fresh cash offers to support its restructuring process.

ALSO READ: Anonymous accuses BAYC of trolling with esoteric symbolism

FTX wins auction for Voyager

Voyager Digital made the announcement today that FTX, with a bid of approximately $1.4 billion, had won the auction for the bankrupt lender and its assets.

The bid represents the crypto that is stored on Voyager’s platform and is worth more than $1.3 billion at the fair market value; however, the deal’s final value will be determined by prices on a date that has yet to be determined.

A statement from the company says that the bid also includes additional consideration that is estimated to provide approximately $111 million of incremental value.

According to the statement, the Official Committee of Unsecured Creditors, which represents creditors and customers during the bankruptcy process, “participated actively in the competitive auction and supports FTX US’s winning bid.”

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Latest posts by Steve Anderrson (see all)