Ripple is Interested in Acquiring Bankrupt Crypto Lender Celsius Assets: Reuters Report

Ethereum World News
Ethereum World News August 10, 2022
Updated 2022/08/10 at 7:05 PM
2 Min Read

TL;DR

  • San Francisco-based company Ripple Labs Inc is potentially interested in purchasing assets of bankrupt Crypto Lender: Celsius.
  • Ripple is actively looking for market opportunities to “strategically scale the company,” according to Ripple’s spokesperson.
  • The company was sued by the U.S. Securities and Exchange Commission in 2020 over $XRP token.

According to a Reuters report, San Franciso-based blockchain payments company Ripple Labs Inc has recently expressed interest in purchasing assets of bankrupt crypto lender Celsius Network.

The company asked the court to be represented in the ongoing bankruptcy proceedings, court filings indicate.

Celsius Network filed for Chapter 11 bankruptcy on July 14, of this year after facing financial difficulties after becoming one of the most prominent victims of the recent market downfall. The company had only $167 million in cash to proceed with further developments in July. Celsius confirmed that they had a $1.2 billion hole on their balance sheet. Another crypto giant FTX declined to bail out the company due to its poor finances.

The spokesperson who spoke to Reuters said they “are interested in learning about Celsius and its assets and whether they could be relevant to our business.” According to the report, Ripple declined to say whether they were interested in purchasing Celsius outright.

Ripple has received steady growth through the crypto bear market and is now looking for opportunities to “strategically scale the company,”.

Ripple is currently fighting a lawsuit by the U.S Securities and Exchange Commission (SEC), which was raised in 2020. Sec alleges that Ripple has been selling $1.3 billion in unregistered securities by selling XRP. Ripple has denied all allegations, arguing that XRP has been trading as a digital currency.

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