Bankrupt P2P Lending Platform Celsius Network Rises 105% on Ripple’s Interest
A representative for San Francisco-based blockchain payments firm Ripple Labs said the business is considering buying the assets of defunct cryptocurrency lender Celsius Network. Ripple Labs is currently engaged in a highly watched legal fight with the US securities regulator.
The spokesman for Ripple declined to comment on whether or not the company was interested in purchasing Celsius entirely, but did indicate that they were curious to learn more about Celsius and its assets to see if any may be useful to their operations.
Despite the instability in the cryptocurrency market, Ripple has maintained its growth and “is currently pursuing for M&A options to tactically develop the firm,” according to a spokeswoman for the company.
Celsius, located in New Jersey, suspended withdrawals in June because of “challenging” market circumstances and filed for bankruptcy in New York in July, alleging a $1.19 billion shortfall.
Attorneys for Ripple filed paperwork with the bankruptcy court last week in an effort to defend the company during this time. The submission was accepted by the court a few days before. Ripple is not one of Celsius’ key creditors, according to the company’s bankruptcy documents. Ripple released the letter in reply to Reuters’ questions about the court documents.
Ripple, which is privately held, has not hitherto executed any significant transactions. It was assessed at more than $15 billion during a private stake purchase in January, the business stated, however industry values have tumbled dramatically amid a cryptocurrency value meltdown in recent months, which has contributed to the demise of Celsius as well as other crypto companies.
As per a July report, Ripple’s overall sales of its crypto XRP, net of acquisitions, increased to $408.9 million in the June 2022 quarter from $273.27 million in the March quarter.
In 2020, the U.S. Securities and Exchange Commission (SEC) charged the business over XRP. The government argues that Ripple and its past and current senior executives sold XRP, which Ripple’s founders developed in 2012, in an illegal $1.3 billion securities sale.
Ripple and its management have refuted the charges, arguing that XRP has been exchanged and utilized as virtual money.