FTX pulls out of deal to take over crypto lender Celsius

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Cryptocurrency exchange FTX was considering providing financial support to troubled crypto lending platform Celsius in exchange for acquiring the company.

However, after studying the financial situationCelsius, FTX representatives discovered a shortfall in the company's balance sheet amounting to about $2 billion, sources tell The Block. FTX refused the takeover, deciding that there were no prospects for cooperation.

Following FTX's refusal to acquire Celsius, the exchange giant is set to focus its efforts on acquiring
competing crypto lender with CelsiusBlockFi. FTX seeks to take advantage of the favorable situation and manage to acquire the platform for $25 million, immediately after providing the company with a revolving credit line in the amount of $250 million. At the same time, the market value of the platform is estimated at several billion dollars, and BlockFi management assures that the deal will definitely not take place for $25 million.

Despite their financial problems, the teamCelsius remains almost completely silent about its development plans. The platform's last official update was issued on June 19, when the company said its goal "remains to stabilize liquidity and operations, but this process will take time."

The other day it became known that US law enforcement agencies stopped the attempt of Celsius CEO Alex Mashinsky to leave for Israel.