Ripple Labs has expressed a desire to buy Celsius Network’s assets. After Celsius declared bankruptcy, a Ripple Labs official spoke about the assets and how they could aid their company.
“We are interested in learning about Celsius and its assets, and whether any could be relevant to our business.” says the spokesperson. The spokesperson declined to comment on Ripple Lab’s acquisition of all of Celsius.
Through the current state of the cryptocurrency market, Ripple has grown as a blockchain payment company. According to the release, they are “actively looking for M&A opportunities to strategically scale the company.”
Celsius Network declared bankruptcy in June, citing “extreme” market conditions as the reason. Celsius’s balance sheet shows a $1.19 billion deficit.
Ripple Labs is a privately held company headquartered in San Francisco. It hasn’t done any major deals in the past, such as potentially purchasing Celsius. According to Celsius’ bankruptcy filings, Ripple is not one of the company’s major creditors. Ripple Labs has filed paperwork with the bankruptcy court to be represented in the proceedings.
According to a July report, Ripple’s total sales of its cryptocurrency XRP, net of purchases, were $408.9 million in the second quarter of 2022, up from $273.27 million in the first quarter. In 2020, the SEC sued Ripple over their controversy.
As per the lawsuit, Ripple and its current and former CEOs conducted a $1.3 billion unregistered securities offering by selling XRP. The XRP coin was created in 2012 by the founders of Ripple. Ripple and its executives have denied the allegations, claiming that XRP is only traded as a digital currency.
Ripple Labs’ potential purchase of Celsius assets is unknown at this time.
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