According to reports, cryptocurrency exchange FTX, run by crypto billionaire Sam Bankman-Fried (SBF), is thinking about purchasing assets from the insolvent lender Celsius Network in order to save it. Coincidentally, the news was released on the same day that Alex Mashinsky submitted his resignation as CEO of Celsius.
Mashinsky explained his decision by saying, "I regret that my prolonged work as CEO has been an increasing distraction, and I am very sorry about the challenging financial conditions people of our community are enduring. By purchasing Celsius's assets, FTX would be signaling its intention to save the lending company, just like FTX US did for Voyager when it secured the winning bid of almost $1.4 billion.
FTX's interest in Celsius Network was mentioned by Bloomberg in a story based on information provided by a source familiar with SBF's deal-making. But as of this writing, neither party has released an official comment.
On September 22, it was discovered that FTX was in discussions with investors to raise $1 billion. If successful, this funding would allow the exchange maintain its $32 billion valuation despite the bear market.
Midway through 2022, Celsius disclosed a $1.2 billion shortfall and filed for bankruptcy. Ripple's interest in acquiring the assets of Celsius was first mentioned by Reuters in August but has since cooled.
To date, Cointelegraph's request for response from FTX has gone unanswered.
In what appears to be a significant reorganization effort, Brett Harrison resigned as president of FTX US and will soon assume an advising position.
1/ An announcement: I’m stepping down as President of @FTX_Official. Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.— Brett Harrison (@BrettHarrison88) September 27, 2022
“Until then, I’ll be assisting Sam [Bankman-Fried] and the team with this transition to ensure FTX ends the year with all its characteristic momentum,” said Harrison.