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September 29, 2022

Sam Bankman-Fried Considers Buying Bankrupt Crypto Lending Firm Celsius as CEO Alex Mashinsky Steps Down

By Rhodilee Jean Dolor

FTX exchange CEO Sam Bankman-Fried is reportedly eyeing acquiring an interest in beleaguered crypto lender Celsius Network as he sets out bailing out industry players pummeled by the bear market.

Citing people familiar with the matter, Bloomberg reports that Bankman-Fried considers bidding on the properties of Celsius albeit it is unclear if the crypto billionaire’s digital assets exchange FTX or trading firm Alameda Research will bid for just some or all of the troubled firm’s assets.

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FTX’s US subsidiary will also scoop up the assets of another embattled crypto company, Voyager Digital, after winning the latter’s bankruptcy auction with a bid of $1.4 billion.

The report of Bankman-Fried aiming to take on Celsius’ assets emerges after Alex Mashinsky stepped down as CEO of the embattled company.

In his resignation letter that Celsius published on Tuesday, Mashinsky says that he is stepping down effective immediately as his continued role as chief executive has become “an increasing distraction.” He will continue to work with the company though as he retains his director position at Celsius.

“I elected to resign my post as CEO of Celsius Network today. Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the Company filed for bankruptcy.”

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Featured Image: Shutterstock/ValDan22