Celsius Network, a New Jersey-based cryptocurrency lending company, is located in New Jersey. Though it maintained its offices in four countries, the company’s operation was global.
Celsius offered a way for users to make deposits in different cryptocurrency assets and offer a percentage return as a reward. The platform also offered loans to customers who pledged some of their digital assets.
Many companies that are related to crypto were affected by the crypto winter of the first half 2022. Cryptospace crisis became more severe after the fall of Terra the algorithmic stablecoin, and the ecosystem that it was built on. Celsius was among those struggling companies that felt the most severe effects of the crisis.
The heat and bearishness of this prolonged trend meant that the company couldn’t survive. According to industry professionals, this was due to the ridiculous yields at which the lending company had to deal with.
Following that, the company declared bankruptcy, stopped withdrawals via its platform and applied for Chapter 11 bankruptcy protection.
SBF To Bid For Celsius Assets
According to a source, Celsius assets have been put up for auction following an insolvency. The report claims that Sam Bankman Fried, founder and CEO at FTX, intends to bid for the assets.
The SBF announcement, despite the crypto market’s decline, saw the native Celsius token, CEL, rise by 10%. The token fell after just a few hours. CEL traded at $1.51, a rise of 1.22% during the previous 24 hours.
SBF’s recent action synchronizes well with the vision of Alameda and FTX. The bearish trend in crypto has seen several firms make purchases in crypto in the first six months of 2018.
SBF signed a deal for BlockFi with one of the most struggling crypto-lending companies. Also, there are reports of SBF’s possible acquisition of Robinhood. But, authenticity remains a mystery as this could just be an urban legend.
FTX won the tender for Voyager Digital’s assets. This is the most recent development. These assets are estimated to be worth approximately $1.4 billion. After an extensive auction, which took more than two weeks and included Binance and other bidders, the company emerged victorious. FTX plans to use West Realm Shires Inc. as its US subsidiary in order to acquire these assets.
Alex Mashinsky, CEO of Celsius Network, Resigns
Alex Mashinsky was recently resigned as CEO of Celsius Network. The Special Committee of Directors of Celsius Network received the executive notification on Tuesday, September 27.
Mashinsky’s resignation cuts across all his positions in the firm. They include Mashinsky’s position as CEO.
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