FTX Passed on Deal to Purchase Celsius Due to Deficient Balance Sheet: Report

Cryptocurrency exchange FTX passed on a deal to purchase beleaguered crypto lender Celsius after examining the poor state of its finances, The Block reported Thursday.

FTX had talks with Celsius over an acquisition but walked away on account of a "$2 billion hole" in the lender's balance sheet, according to the report, which cited two people with knowledge of the matter.
Sam Bankman-Fried's crypto exchange also found Celsius hard to deal with, one of the sources said.
Celsius's woes have been among the major touchpoints of the recent troubled conditions in the crypto market. On June 13, the lender paused withdrawals citing "extreme market conditions," raising concerns about its solvency.
The lender's CEL token is down over 13% on the day, according to data by CoinMarketCap, having dropped from around 73 cents at 13:00 UTC to under 62 cents less than an hour later.
FTX appears to have been in a bullish mood for acquisitions of late, with news emerging last week that it wishes to take a stake in another troubled crypto lender BlockFi. Earlier this week FTX was also reported to be looking into acquiring trading platform Robinhood (HOOD).
Celsius could not immediately be reached for comment on the report. FTX declined to comment when contacted by CoinDesk.

UPDATE (14:30 UTC June 30): Adds that FTX declined to comment.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.