FTX walked away from a deal with Celsius after seeing state of its finances
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Crypto exchange operator FTX looked at making a deal with troubled crypto lender Celsius but ultimately walked away, two people with knowledge of the matter told The Block.
FTX began talks with Celsius about providing financial support or making an acquisition but decided against proceeding after looking at Celsius's finances, the sources said. Celsius had a $2 billion hole in its balance sheet and FTX found the company difficult to deal with, one of the sources said.
Celsius did not respond to The Block's request for comment.
Celsius has been fighting for survival since freezing all withdrawals on June 12, citing "extreme market conditions." Clients' funds have remained stuck ever since. Celsius claimed 1.7 million customers and around $12 billion in assets under management in May.
Amid its financial woes, Celsius has remained almost silent. Its last official update was issued on June 19, when the company said its objective "continues to be stabilizing our liquidity and operations. This process will take time."
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