The creator of the XRP cryptocurrency, Ripple Labs, may purchase the assets of the Celsius network.
Ripple labs, the blockchain payments startup is reportedly interested in Celsius’ assets, although the specific intentions are unclear, according to a Reuters story.
However, neither company has made a formal statement about the interest in purchasing Ripple Celsius assets to yet. The Celsius network had declared bankruptcy last month.
This happened after it stopped user account withdrawals and transfers back in June.
Ripple Labs Buying Celsius Assets?
According to a spokeswoman for Ripple, the firm is considering the possibility of buying some of the insolvent crypto lender’s assets.
According to the source, Ripple is examining if Celsius’ assets could be important to its goals. The Ripple official, however, made no comments about whether Ripple is really interested in buying Celsius.
“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business. Ripple has continued to grow exponentially is actively looking for M&A opportunities to strategically scale the company.”
Planned Asset Sales
The business said it had assets worth around $4.3 billion when unveiling its reorganization plans. It declared liabilities of $5.5 billion, assets of $4.3 billion, and $600 million in CEL tokens, which are each worth $170 million.
The acquisition of Celsius assets by Ripple might benefit small-scale investors by providing them with financial relief. In order to satisfy its financial needs, Celsius has previously said that it was thinking about selling assets.
To satisfy its financial responsibilities, “the business will also investigate asset sales and third-party investment alternatives,” according to the statement.
It said at the time that the main goal is to increase stakeholder returns. The US Department of Financial Protection and Innovation was recently made aware of the cryptocurrency lender.
The agency said in a court order that Celsius CEO Alex Mashinsky “committed substantial misrepresentations and omissions in the marketing of cryptocurrency interest accounts.”
It went on to say that it was especially good at downplaying the dangers of storing digital assets with Celsius.
“Celsius offered accounts that allowed customers to earn interest on digital assets deposited with Celsius without first qualifying those accounts as securities in compliance with California law.”