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FTX discarded Celsius deal after reportedly finding $2B missing from its balance sheet
FTX reportedly walked away from a deal with Celsius after discovering a $2 billion hole in its balance sheet. Celsius is currently looking to make "strategic transactions" to secure its assets.
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Updated: Jun. 30, 2022 at 6:54 pm UTC
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FTX has walked away from a deal to acquire Celsius after reviewing its balance sheet and finding a “$2 billion hole,” according to a June 30 report by The Block.
Two sources reportedly told The Block that “FTX found the company difficult to deal with” and ultimately passed on a deal due to “the state of its finances.”
FTX has recently begun talks with another crypto platform, BlockFi, which has also experienced liquidity issues following the downfall of Terra Luna.
A recent Nansen report identified how “Three Arrows Capital “withdrew a sizable amount of 29,054 stETH from BlockFi” on June 7, which was worth around $50 million at the time. FTX swooped in to offer a $250 million line of credit to BlockFi and may now take over the entire operation if a deal can be made.
FTX CEO Sam Bankman-Fried also personally acquired shares in Voyager Digital after FTX’s parent company, Alameda Ventures, issued a $200 million and 15K Bitcoin loan to the exchange.
SBF, through FTX and Alameda Ventures, appears ready to shop for deals amid the contagion from the collapse of Terra Luna.
Celsius was valued at $3.5 billion following a raise of $750 million in late 2021. Currently, the company is “pursuing strategic transactions as well as a restructuring of our liabilities” based on a blog post published June 30.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.