Ripple Labs interested in bankrupt crypto lender Celsius’ assets

Taken on June 13, 2022, this illustration shows the Celsius Network logo and a representation of a cryptocurrency. REUTERS/Dado Ruvic/Illustration/File Photo

Aug 10 (Reuters) – San Francisco-based blockchain payments firm Ripple Labs Inc. has been embroiled in a high-profile battle with U.S. securities regulators, but has filed for bankruptcy, according to a company spokesperson. interested in the possibility of purchasing the assets of cryptocurrency lender Celsius Network.

A spokesperson declined to say whether Ripple would be interested in acquiring Celsius outright, saying, “We would like to know more about Celsius and its assets and if there is anything related to our business.” Stated.

Ripple continues to grow despite the turmoil in the cryptocurrency market and is “actively looking for M&A opportunities to strategically expand the company,” said a spokesperson.

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

Last week, Ripple’s attorneys filed a complaint in bankruptcy court seeking to join the proceedings. The court approved the filing earlier this week. Celsius’ bankruptcy filing shows that Ripple is not a major creditor of Celsius. Ripple provided comments in response to Reuters’ questions about the court filing.

A lawyer identified as representing Ripple declined to comment. Celsius did not immediately respond to a request for comment.

Cryptocurrencies have had a difficult year, with the world’s largest bitcoin falling nearly 70% from its all-time high of $69,000 in November. Markets were rocked by the collapse of the popular terraUSD and luna tokens in May, resulting in widespread losses for several major industry players.

According to the bankruptcy filing, Celsius’ assets include custody accounts, loans, bitcoin mining operations, its own CEL tokens, bank cash, and digital assets held in cryptocurrencies held by Celsius. increase.

Privately held Ripple has not made any big deals to date. The company said it was valued at about $15 billion after a private equity buyback in January, but industry valuations have tumbled sharply in the past few months as crypto prices have crashed, with Celsius and others Defeated a cryptocurrency company.

According to a report released by the company in July, Ripple’s XRP net sales were $408.9 million in the second quarter, compared with $273.27 million in the first quarter.

The company was sued by the U.S. Securities and Exchange Commission (SEC) over XRP in 2020. The agency alleges that Ripple and its current and former CEO are conducting a $1.3 billion unregistered securities offering by selling XRP, which Ripple’s founder created in 2012. I’m here.

Ripple and executives have denied this claim, with the company claiming that XRP has been traded and used as a digital currency.

Reported by Hannah Lang of Washington.Editing by Mark Porter, Josie Kao, Mark Potter

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