According to a Reuters report, Ripple’s lawyers submitted three filings on August 5 to participate in the Celsius bankruptcy proceedings. However, those filings do not indicate why Ripple became involved in the case or whether its involvement is related to its acquisition plans. Reuters says Ripple is not a major creditor of Celsius.
It is not yet clear whether Celsius will accept such a deal. Crypto lender Nexo proposed a deal similar to Celsius in June, which was rejected.
Celsius initially froze its users’ assets in June citing “extreme market conditions”, followed by a few other crypto firms such as Voyager and CoinFLEX. Thereafter, the company paid off its outstanding loans on various DeFi loans, recovered its pledged assets, and filed bankruptcy a month later.
The filing revealed that the lending firm’s assets include cash, cryptocurrencies, the company’s Celsius (CEL) tokens, and various digital assets within its custody accounts, loans, and bitcoin mining business. However, when these assets were weighed against the firm’s liabilities, the company still reported a loss of $1.19 billion (about Rs 9,455 crore) on its balance sheet. Now, the chances of the company’s creditors getting any of their money back look negligible.