FTX will pay fair market value for Celsius, SBF says News โธ US โธ Celsius โธ FTX โธ Bankruptcy
FTX will pay fair market value for Celsius, SBF says
A Celsius investor Simon Dixon argued that FTX aims to purchase Celsius' asset cheaply.
2 min read
Updated: Oct. 3, 2022 at 10:54 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX CEO Sam Bankman-Fried said his firm would pay a “fair market price” for Celsius’ assets if it gets involved in the bankrupt lender acquisition process in an Oct. 2 tweet.
to be clear — in Voyager, our bids are generally determined by fair market price, no discounts; goal isn't to make money buying assets at cents on the dollar, it's to pay $1 on the $1 and get the $1 back to customers.
If we were to get involved in Celsius, it would be the same.
— SBF (@SBF_FTX) October 2, 2022
Celsius investors wary of FTX purchase
Simon Dixon, the CEO of BnkToTheFuture, has expressed concerns over the possibility of Celsius assets being purchased by FTX.
Right now @SBF_FTX is raising finance at a $32Billion valuation in order to buy the assets that @Mashinsky scammed from us. What do you think he is pitching to his investors? โIโm about to get billions of $$$ of assets for cents on the dollar. Do you want in?โ Itโs OUR Assets! https://t.co/PqokxhIblf
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) October 2, 2022
According to Dixon, FTX is raising funds at a $32 billion valuation to fund its purchase of Celsius assets. He continued that SBF’s pitch to investors would be “I’m about to get billions of $$$ of assets for cents on the dollar. Do you want in?”
Dixon stated that the chances of Celsius creditors being made whole becomes slimmer if an external investor like FTX buys the company. Instead, he argues that “only creditors can make other creditors whole.”
3/7) Only creditors can make other creditors whole. Only regulators can agree on a compliant structure. Only #Celsius can put forward a plan in exclusivity. Only @CelsiusUcc can force alternative. Only judge can sign off. Only creditors can vote. Only examiner can prove crime. pic.twitter.com/wkFyTEw85O
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) October 2, 2022
Dixon said:
“There are voluntary leaders of creditor interest groups that can co-ordinate best recovery for their interests – Loans, Custody, Earn, Mining, Token – itโs not my plan that wins, itโs not Celsius plan that wins, itโs creditors plan that wins.”
SBF, however, responded that if his firm were to purchase Celsius’ assets, the goal would be “to pay $1 on the $1 and get the $1 back to customers.”
Reports revealed that FTX had walked away from a deal to acquire Celius earlier because of a $2 billion hole in its balance sheet.
Meanwhile, FTX has not provided information on Voyager’s customers’ fate since it completed the acquisition of the bankrupt company.
Regulators move against Celius’s plan to sell stablecoins
The US Department of Justice objected to Celsius’ request to reopen its withdrawals and sell its stablecoins in a Sept. 30 court filing.
According to the DOJ, it is important to have a clear idea of Celsius’ finances before the court makes such a decision. State regulators in Texas and Vermont also objected to the Celsius motion, saying the bankrupt firm may seize the opportunity to reopen its illegal operations in their states.
Meanwhile, the court has approved Shoba Pillay’s appointment as an independent examiner to provide a full report on Celsius’ assets and liabilities.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Celsius Network is a P2P decentralized lending & borrowing platform.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Alex Mashinsky, born in 1965 in the Soviet Union to a Jewish family, moved to Israel in the 1970s.
