FTX refuses to buy Celsius

The exchange’s experts have identified a discrepancy worth $2 billion in the platform’s balance sheet

03.07.2022 - 06:30

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What’s new? Cryptocurrency exchange FTX has refused a deal with Celsius that would have involved buying the platform or providing it with financial support to deal with the freezing of customer funds amid the market crash on June 13. The Block’s sources reported that while looking at Celsius’ finances, the exchange’s experts discovered a discrepancy worth $2 billion in its balance sheet. Earlier, investment bank Goldman Sachs announced plans to raise $2 billion to buy out Celsius’ assets.

Material by The Block

Celsius situation. Regulators in five US states launched an investigation into Celsius following the suspension of withdrawals. The company hired experts from Citigroup’s investment bank to find new sources of financing and lawyers from Akin Gump to conduct restructuring.

Celsius shareholder, BnkToTheFuture CEO Simon Dixon, later proposed three options to restore the platform: two of them involve restructuring and relaunching, while the third is to raise funding from the community and large bitcoin holders.

In May, Celsius’ representatives said that it had $12 billion in assets under management and 1,7 million customers using the platform.

As of July 2, 12:20 UTC, the platform’s native token CEL is trading at $0,6, having gained 1,5% in 24 hours, according to CoinGecko.

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