Home News FTX Exchange Reportedly Backs Out Of Acquiring Celsius, Here’s Why

FTX Exchange Reportedly Backs Out Of Acquiring Celsius, Here’s Why

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On Thursday, The Block revealed that an highly anticipated deal that will see crypto exchange FTX acquire nearly-liquidated crypto lender Celsius, will no longer go through. 

FTX Exchange Gives Reasons For Decision

According to the report, FTX is deciding against the acquisition due to the poor state it found Celsius’ finance in. Celsius reportedly could not account for a missing $2 billion in its balance sheet.

In addition, sources familiar with the development also claim that FTX exchange co-founder and CEO, Sam Bankman-Fried had it tough dealing with Celsius.

Recall that talks about an acquisition began after a series of strong showing from FTX as the impact of the recent market crash began to settle in.  Sometime last week, the exchange indicated interest in helping out a crypto lender BlockFi which was having it rough. Similarly, reports also filtered through this week that FTX was also considering purchasing another suffering trading platform Robinhood (HOOD).

Celsius Still On The Brink of Bankruptcy

Meanwhile, the negotiations that have now broken down means that Celsius’ woes will continue. Recall that the lender was greatly impacted by the recent crash, that it had to halt withdrawals on June 13. Although at the time, the firm cited extreme market conditions, citing uncertainties about its solvency. Till now, however, withdrawals are yet to return to the platform.  And the crypto market is not exactly back out of the downtrend either.

The lender’s token CEL is down by over 17% in the last 24 hours, according to CoinMarketCap data. As of publication, CEL is currently trading at $0.6125.

So far, efforts to get Celsius to comment on the latest developments have proved unyielding. FTX itself is yet to give an official statement on the report. 

This story is still developing and would be updated as soon as there is more information.

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