Media: Ripple Labs interested in assets of bankrupt crypto lender Celsius

This was reported to journalists by an unnamed source within the company

11.08.2022 - 10:10

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2 min

What’s new? On August 10, the Reuters news agency reported that Ripple Labs may be interested in investigating crypto lender Celsius’ activities to see if its assets “could be relevant to our business.” An anonymous Celsius representative told reporters this, declining to answer whether Ripple Labs is considering a direct purchase of the platform.

Material on the Reuters website

What other statements have been made? A source at Ripple Labs also said that the company continues to grow despite the turmoil in the cryptocurrency market and is actively looking for mergers and acquisitions (M&A) opportunities as part of its strategic expansion.

Ripple Labs is an American technology company founded in 2012. It developed Ripple, a payment blockchain protocol, used by government financial institutions in Australia, Canada, and Israel, as well as XRP Ledger, a decentralized public blockchain with an open source. The native token of Ripple (XRP) ranks sixth in the ranking of cryptocurrencies by market capitalization with a figure of $18,73 billion. As of August 11, 10:00 UTC, the asset is trading at $0,38, having gained 4,88% per day, according to Binance.

What is known about the situation with Celsius? On June 13, the platform froze customer funds, and a month later declared bankruptcy. During the proceedings, Celsius claimed to be entitled to most of the customer funds under the user agreement.

The company’s liabilities to customers and creditors exceeded its assets by $1,2 billion. On August 8, the creditors’ committee began investigating the platform’s CEO, Alex Mashinsky, and its insiders. It later became known that an address associated with Mashinsky had begun selling native tokens CEL amid the rate hike. As of August 11, CEL is trading at $2,356, having gained 29,99% per day.

For more details on the reasons behind the bankruptcy of one of the largest crypto lenders, see GetBlock Magazine’s article.

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