Crypto Lender On Verge of Insolvency: Will Nexo Acquire Celsius Network Today? | Loan Asset Buy-Out Offer On Twitter Amidst DeFi Sell-Off 2022

1 min read

Crypto Lender On Verge of Insolvency: Will Nexo Acquire Celsius Network Today? | Loan Asset Buy-Out Offer On Twitter Amidst DeFi Sell-Off 2022

After Celsius halted all withdrawals, swaps, and transfers between accounts due to “extreme market conditions,” Nexo has offered to buy its rival’s assets.

The offer to buy Celsius’s assets ends on June 20.

The Nexo team indicated that it was in a strong liquidity and equity position to readily acquire any remaining assets of Celsius, mainly their collateralized loan portfolio and that yesterday, it reached out to Celsius to offer its support, but they refused.

The crypto lending firm has put together a formal Letter of Intent to acquire the remaining qualifying assets, mainly collateralized loan receivables secured by corresponding collateral assets, brand assets, and the customer database of the business.

The price of Celsius’s native Celsius token is currently down 50% to $0.20 per token, according to data from Coinmarketcap.

According to speculations on social media, Celsius has unstaked $247 million worth of Wrapped Bitcoin from AAVE and sent it to the FTX exchange. Also, large amounts of Wrapped Bitcoin (WBTC), Ethereum, and other cryptocurrencies have been moved while simultaneously pausing withdrawals for users.

In unusual movements, cryptos from the mail DeFi wallet of Celsius began moving liquidity to FTX at 18:00 ET on June 12, as WBTC was removed from Celsius’s main AAVE staking and lending platform. The company had earned interest on its deposits stored in its DeFi wallet.

Users claim 9,500 WBTC tokens worth $247m have been moved from Aave to the FTX exchange. The movement of liquidity has been unknown and not specified by the Celsius network.

According to users, 9,500 WBTC tokens worth $247m have been moved from AAVE to the FTX exchange. Also, 54,749 Ethereum worth $74.5m has been moved to FTX.

While demanding answers for the funds’ movement, users further claim that the Celsius board is not transparent with their dealings.

The firm, overall, has been accused of moving $320m worth of liquidity to the FTX exchange.

Via this site


Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.

Stay on top of Crypto Trends

Subcribe to our newsletter to get the latest crypto news in your inbox