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FTX will pay fair market value for Celsius, SBF says FTX will pay fair market value for Celsius, SBF says

FTX will pay fair market value for Celsius, SBF says

A Celsius investor Simon Dixon argued that FTX aims to purchase Celsius' asset cheaply.

FTX will pay fair market value for Celsius, SBF says

Cover art/illustration via CryptoSlate

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.

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.

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.”

Dixon said:

“There are voluntary leaders of creditor interest groups that can co-ordinate best recovery for their interests – Loans, Custody, Earn, Mining, Token – itโ€™s not my plan that wins, itโ€™s not Celsius plan that wins, itโ€™s 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.

Posted In: , , , Bankruptcy

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