Ripple Labs interested in bankrupt crypto lender Celsius’ assets




San Francisco-based blockchain payments company Ripple Labs Inc, which is embroiled in a high-profile battle with the U.S. securities regulator, is interested in potentially purchasing assets of bankrupt crypto lender Celsius Network, according to a company spokesperson.



“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business,†the spokesperson said, declining to say if Ripple was interested in acquiring Celsius outright.


Ripple has continued to grow through the crypto market turmoil and “is actively looking for M&A opportunities to strategically scale the company,” the spokesperson said.


New Jersey-based Celsius froze withdrawals in June citing “extreme” market conditions and filed for bankruptcy in New York last month, listing a $1.19 billion deficit on its balance sheet.


Last week, lawyers for Ripple submitted filings to the bankruptcy court seeking to be represented in the proceedings.


The court approved the filing earlier this week. Ripple is not among Celsius’ major creditors, Celsius’ bankruptcy filings show. Ripple provided the comment in response to Reuters’ queries regarding the court filings.


A lawyer approved to represent Ripple declined to comment.


Celsius did not immediately respond to a request for comment.


Cryptocurrencies have had a rocky year, with the world’s largest, bitcoin, down nearly 70% from its all-time high of $69,000 in November. Markets were shaken by the collapse of the popular terraUSD and luna tokens in May, which caused widespread losses for several major industry players.


According to bankruptcy filings, Celsius’ assets include digital assets held in custody accounts, loans, a bitcoin mining business, the company’s own CEL token and bank cash and cryptocurrencies that Celsius has on hand.


Privately owned Ripple has not previously done any major deals. It was valued at around $15 billion following a private stock buyback in January, the company said, although industry valuations have fallen significantly during a price crash over the past few months that helped topple Celsius and other firms.


Ripple’s total sales of its XRP, net of purchases, were $408.9 million in the second quarter, compared with $273.27 million in the first quarter, according to a report the company put out in July.


The company was sued by the U.S. Securities and Exchange Commission (SEC) in 2020 over XRP. The agency alleges that Ripple and its current and former chief executives have been conducting a $1.3 billion unregistered securities offering by selling XRP, which Ripple’s founders created in 2012.


Ripple and the executives have denied the allegations, and the company has argued that XRP has traded and been used as a digital currency.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

mail Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Source link

Leave a Comment

%d bloggers like this: