Ripple Could Buy Assets From Bankrupt Crypto Lender Celsius

Blockchain payments firm Ripple is interested in buying assets of bankrupt cryptocurrency lender Celsius Network, a company spokesperson said Wednesday (Aug. 10).

“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business,” the spokesperson told Reuters, while declining to comment on whether the company wanted to acquire Celsius.

Ripple has grown despite upheaval in the crypto market and “is actively looking for M&A opportunities to strategically scale the company,” the spokesperson said.

As PYMNTS reported, Celsius filed for Chapter 11 bankruptcy protection in July, a month after freezing customer accounts.

The company had made a name for itself in the crypto lending sector with its high returns and suggestions that it offered less risk than traditional banks.

Learn more: Crypto Lender Celsius Files for Chapter 11 Bankruptcy

However, Celsius ran into trouble when it began offering large yields to crypto depositors while making loans that weren’t backed by proper collateral, leaving the company vulnerable to a market downturn.

The company froze withdrawals, swaps, and transfers in June, with a member of its board calling the freeze a “difficult but necessary” step to stop a run and losses to customers.

Celsius was founded in 2017 by entrepreneur Alex Mashinsky and was valued at more than $3 billion during its last venture round.

“This is the right decision for our community and company,” Mashinsky following the bankruptcy filing. “I am confident that when we look back at the history of Celsius, we will see this as a defining moment.”

Read more: Celsius Network Crash Leaves Customers Struggling Without Funds

His words were of little comfort to members of the community, who posted letters to a public online court docket detailing how they lost their savings.

These messages often featured the theme of people acting on the belief that Celsius was “safer than banks,” according to one letter telling the story of a customer who had been with Celsius since 2019. Another writer said they felt “betrayed, ashamed, depressed, angry.”

Ripple attorneys submitted filings last week with the bankruptcy court asking to be represented in the proceedings, a request the court has since approved, Reuters said.