Thursday, December 8, 2022
 

Ripple Labs Looks To Buy Assets of Bankrupt Crypto Lender Celsius

  • Reuters reported that Ripple Labs is showing interest in acquiring Celsius Network.
  • Ripple representative said that the firm is constantly seeking prospects for M&A to strategically grow its business.
  • Ripple seems to see long-term potential in Celsius Network with a change in management.

A representative for Ripple Labs told Reuters on Wednesday that the San Francisco-based cryptocurrency company has shown interest in buying the assets of the defunct cryptocurrency lender Celsius Network. Nevertheless, the company did not clarify whether or not it would buy Celsius’s assets altogether.

According to the Reuters report, a Ripple representative said that the firm is constantly seeking prospects for mergers and acquisitions (M&A) to strategically grow its business. Regarding the company’s interest to purchase Celsius assets, the representative said:

We are interested in learning about Celsius and its assets and whether any could be relevant to our business.

It can be remembered that Celsius submitted its petition for bankruptcy protection in July and halted the withdrawals for its customers in June. Since that time, the company has been subjected to a heightened level of attention from a number of regulators in the United States. Recent allegations have been made that the company’s CEO, Alex Mashinsky, has provided the public with statements that are false regarding the business.

Meanwhile, Ripple is in the middle of a legal dispute with the United States Securities and Exchange Commission (SEC) over whether or not the sale of its cryptocurrency constitutes a security offering in court.

Ripple has recognized that there is still long-term potential for the cryptocurrency industry, particularly for those initiatives that have the capability of providing consumers with real-world usefulness. This is despite the problems that the cryptocurrency market has and is going through this year. The XRP issuer may consider Celsius to be one of those initiatives that may benefit from new management.

  • Reuters reported that Ripple Labs is showing interest in acquiring Celsius Network.
  • Ripple representative said that the firm is constantly seeking prospects for M&A to strategically grow its business.
  • Ripple seems to see long-term potential in Celsius Network with a change in management.

A representative for Ripple Labs told Reuters on Wednesday that the San Francisco-based cryptocurrency company has shown interest in buying the assets of the defunct cryptocurrency lender Celsius Network. Nevertheless, the company did not clarify whether or not it would buy Celsius’s assets altogether.

According to the Reuters report, a Ripple representative said that the firm is constantly seeking prospects for mergers and acquisitions (M&A) to strategically grow its business. Regarding the company’s interest to purchase Celsius assets, the representative said:

We are interested in learning about Celsius and its assets and whether any could be relevant to our business.

It can be remembered that Celsius submitted its petition for bankruptcy protection in July and halted the withdrawals for its customers in June. Since that time, the company has been subjected to a heightened level of attention from a number of regulators in the United States. Recent allegations have been made that the company’s CEO, Alex Mashinsky, has provided the public with statements that are false regarding the business.

Meanwhile, Ripple is in the middle of a legal dispute with the United States Securities and Exchange Commission (SEC) over whether or not the sale of its cryptocurrency constitutes a security offering in court.

Ripple has recognized that there is still long-term potential for the cryptocurrency industry, particularly for those initiatives that have the capability of providing consumers with real-world usefulness. This is despite the problems that the cryptocurrency market has and is going through this year. The XRP issuer may consider Celsius to be one of those initiatives that may benefit from new management.

 

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