Overview

Click to expand overview
FTX, one of the worlds largest digital asset exchanges, was considering a deal to buy the embattled crypto lender Celsius, The Block reports.FTX, led by a young According to court filings, Celsius initially filed a $2 billion claim citing “unsubstantiated and disparaging statements” circulated by FTX insiders. However, FTX Celsius was “difficult to deal with” and that “Celsius had a $2 billion hole in its balance sheet.” Celsius is further investigating whether certain of FTX customers 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 The plans of FTX exchange to acquire nearly-bankrupt crypto lender Celsius, may have fallen through, per new reports. Celsius had a $2 billion hole in its balance sheet, one source said. Crypto exchange operator FTX looked at making a deal with troubled crypto lender Celsius but

FTX Walks Away From Celsius Acquisition: $2 Billion Hole Uncovered

The crypto world is reeling after FTX, one of the world\'s largest digital asset exchanges, reportedly backed out of a potential deal to acquire the embattled crypto lender Celsius. According to reports, FTX, led by a young... (we\'ll get to that later!), ultimately decided to abandon the acquisition after uncovering a significant financial shortfall in Celsius\'s books.

The Block first reported on June 30th that FTX has walked away from a deal to acquire Celsius after reviewing its balance sheet and finding a “$2 billion hole.” Two sources familiar with the matter confirmed the decision, highlighting the severity of Celsius\'s financial situation. The plans of FTX exchange to acquire nearly-bankrupt crypto lender Celsius, may have fallen through, per new reports.

What Caused the Pull-Out? The $2 Billion Question.

The core reason for FTX\'s withdrawal appears to be a massive $2 billion deficit in Celsius\'s balance sheet. One source familiar with the negotiations stated that Celsius had a $2 billion hole in its balance sheet. Crypto exchange operator FTX looked at making a deal with troubled crypto lender Celsius but... the deal ultimately proved untenable. The financial discrepancies were simply too large to overcome, making the acquisition a risky proposition for FTX.

Celsius Fires Back: "Unsubstantiated and Disparaging Statements"

Interestingly, the story doesn\'t end there. According to court filings, Celsius initially filed a $2 billion claim citing “unsubstantiated and disparaging statements” circulated by FTX insiders. However, FTX Celsius was “difficult to deal with” and that “Celsius had a $2 billion hole in its balance sheet.” It appears tensions were high during the due diligence process.

What\'s Next for Celsius?

With FTX out of the picture, Celsius faces an uncertain future. Celsius is further investigating whether certain of FTX customers may have been affected. The company is currently navigating bankruptcy proceedings and exploring alternative options to restructure its business and repay its creditors. The $2 billion deficit discovered by FTX further complicates an already complex situation.

Key Takeaways:

  • FTX was considering a deal to buy the embattled crypto lender Celsius, The Block reports.
  • FTX pulled out of the acquisition after discovering a $2 billion hole in Celsius\'s balance sheet.
  • Celsius is facing significant financial challenges and is currently in bankruptcy proceedings.

The collapse of this potential deal underscores the volatility and risks associated with the cryptocurrency market. Stay tuned for further updates as the Celsius saga unfolds.

Top Sources

Related Articles