Home Cryptocurrency Ripple Labs interested in bankrupt crypto lender Celsius’ assets

Ripple Labs interested in bankrupt crypto lender Celsius’ assets

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Ripple Labs interested in bankrupt crypto lender Celsius’ assets


Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

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Aug 10 (Reuters) – San Francisco-based blockchain payments company Ripple Labs Inc, which is embroiled in a high-profile battle with the US securities regulator, is interested in potentially purchasing assets of bankrupt crypto lender Celsius Network, according to a company spokesperson .

“We are interested in learning about Celsius and its assets, and whether anything could be relevant to our business,” the spokesperson said, declining to say if Ripple was interested in acquiring Celsius outright.

Ripple has continued to grow through the crypto market turmoil and “is actively looking for M&A opportunities to strategically scale the company,” the spokesperson said.

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New Jersey-based Celsius froze withdrawals in June citing “extreme” market conditions and filed for bankruptcy in New York last month, listing a $1.19 billion deficit on its balance sheet. read more

Last week, lawyers for Ripple submitted filings to the bankruptcy court seeking to be represented in the proceedings. The court approved the filing earlier this week. Ripple is not among Celsius’ major creditors, Celsius’ bankruptcy filings show. Ripple provided the comment in response to Reuters’ queries regarding the court filings.

A lawyer approved to represent Ripple declined to comment. Celsius did not immediately respond to a request for comment.

Privately owned Ripple has not previously done any major deals. It was valued at around $15 billion following a private stock buyback in January, the company said, although industry valuations have fallen significantly during a cryptocurrency price crash over the past few months which helped topple Celsius and other cryptocurrency firms.

Ripple’s total sales of its cryptocurrency XRP, net of purchases, were $408.9 million in the second quarter, compared with $273.27 million in the first quarter, according to a report the company put out in July.

The company was sued by the US Securities and Exchange Commission (SEC) in 2020 over XRP. The agency alleges that Ripple and its current and former chief executives have been conducting a $1.3 billion unregistered securities offering by selling XRP, which Ripple’s founders created in 2012.

Ripple and the executives have denied the allegations, and the company has argued that XRP has traded and been used as a digital currency.

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Reporting by Hannah Lang in Washington; Editing by Michelle Price, Mark Porter and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

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