Celsius Network is a cryptocurrency lending firm headquartered in New Jersey. Though it maintained its offices in four countries, the company’s operation was global.
Celsius allowed users to deposit different crypto assets while offering a percentage yield as a reward. Also, customers could get loans from the platform through a pledge of some digital assets as securities.
Many crypto-related firms were affected during the severe crypto winter in the first half of 2022. The collapse of the algorithmic stablecoin Terra and its ecosystem magnified the crisis in the crypto space. Celsius was one of the struggling firms that experienced a more significant impact from the situation.
The company could not survive the heat of the prolonged bearish trend. According to some industry participants, the lending firm had to struggle more due to its outrageous rates on yields.
Subsequently, it became bankrupt, stopped all withdrawals on its platform, and filed for Chapter 11 bankruptcy protection.
SBF To Bid For Celsius Assets
Following insolvency, a reporting source disclosed that Celsius assets are up for bidding. According to the report, the founder and CEO of FTX crypto exchange, Sam Bankman-Fried, plans to participate in bidding for the assets.
Despite the overall crypto market decline today, the native token of Celsius, CEL, surged by 10% following the SBF statement. However, the token dipped after a few trading hours. At the time of press, CEL is trading around $1.51 depicting an increase of 1.22% over the past 24 hours.
The recent move from the SBF synchronizes with the vision of his companies, Alameda and FTX. Through the bearish crypto trend in the first half of the year, the firms have been making several purchases in the crypto industry.
SBF had a deal with BlockFi, one of the struggling crypto lending companies. Also, there are reports of SBF’s possible acquisition of Robinhood. However, the authenticity is still doubtful as it could all be part of rumors.
In the latest development, FTX just won its bid for the assets of the insolvent Voyager Digital. The assets have an estimated value of about $1.4 billion. The company came out at the top after an auction that took two weeks with Binance and others as bidders. FTX will use West Realm Shires Inc., its US subsidiary, to acquire the assets.
Alex Mashinsky, CEO Of Celsius Network Resigns
Recently, Alex Mashinsky, the CEO of the Celsius Network, tendered his resignation letter. The executive announcement was on Tuesday, September 27, to the Special Committee of the Board of Directors of Celsius Network.
Mashinsky’s resignation cuts across all his positions in the firm. These include his position as the CEO and other positions and directorships at various company subsidiaries.
Featured image from Zipmex, Chart: TradingView.com