Amidst Celsius Network Bankruptcy Case, FTX CEO Considering Celsius Bid

UTC by Sanaa Sharma · 2 min read
Amidst Celsius Network Bankruptcy Case, FTX CEO Considering Celsius Bid
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The price of the CEL token plunged below $1.40 amid the crypto lender’s current bankruptcy battle.

Well-known FTX Chief Executive Officer Sam Bankman-Fried is contemplating bidding on Celsius Network’s assets, a bankrupt cryptocurrency lender company. The cryptocurrency exchange is working hard to close a $1 billion funding round.

Recently, the Celsius committee that represented clients and creditors in the Celsius Bankruptcy case asked for the dismissal of Chief Executive Officer Alex Mashinsky. The committee of Unsecured Creditors (UCC) was running its investigation into the organization and its administration. The legal findings led to summon the removal of Mashinsky as the CEO.

Celsius announced Chief Financial Officer Chris Ferraro as Chief Restructuring Officer and the Interim Executive Officer. The UCC claimed that it was envisioning a more elaborate conversation with Ferraro and that he has shown immense promise as the interim leader.

After acquiring data from Celsius’s administration as part of the investigation, the committee decided to eliminate Mashinsky as part of the estates. Mashinsky submitted his resignation on September 27th and the step is seen as the right move for the firm’s bankruptcy proceedings to begin.

Since Mashinsky’s dismissal, the price of the Celsius token has tanked. The price of CEL plunged below $1.40 amid the crypto lender’s current bankruptcy battle. CEL was being traded at $1.37, from $1.43 instantly before the announcement.

Celsius has found it tough to recover after the crypto market collapsed at the beginning of this year. The company froze withdrawal before filing for bankruptcy. Several crypto lending firms have suffered heavy losses that have led them to file for bankruptcy recently. Another example is Voyager, which has witnessed a token VGX decline from $3 at the start of the year to under $0.7 today.

Before his resignation, CEO Mashinsky was struggling to revive the firm amidst custodial services. Mashinsky recently held a meeting with his employees to restructure a scheme that would bring the company back from bankruptcy. The Times was able to find a recording of the meeting, which was leaked to Tiffany Fong by an employee. In the meeting, Mashinsky is seen introducing a plan that would include Celsius storing crypto and charging fees on some transactions. The plan, however, was distant from Celsius’ previous ‘no fee’ branding.

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