Source: FTX is in the process of raising a $1B round, which hasn't closed, as Sam Bankman-Fried considers bidding for bankrupt lender Celsius Network's assets
Sam Bankman-Fried, the crypto billionaire who has been bailing out distressed industry players in recent months …
BloombergOlga Kharif
Context & Ripple Effects
FTX had already positioned itself as a backer of distressed crypto lenders, extending BlockFi a $250M credit line while discussing an equity stake. Its earlier Celsius review ended after FTX reportedly found a $2B balance-sheet hole, making a renewed interest in Celsius assets a narrower, bankruptcy-era opportunity rather than a rescue of the lender itself.
The unclosed $1B raise puts FTX's own financing alongside its ambitions to deploy capital. Subsequent coverage makes that tension consequential: FTX later disclosed an $8B cash shortfall and entered bankruptcy.
First-order effects
FTX's ability to bid for Celsius assets is immediately contingent on completing the reported funding round, placing prospective investors at the center of its distressed-asset strategy.
Celsius's asset process gains FTX as a potential bidder after the exchange had previously declined a broader deal with the lender.
Second-order effects
BlockFi and other distressed crypto firms that had looked to FTX for support face a more constrained backer as FTX seeks outside capital while evaluating another lender's assets.
Other bidders for Celsius assets must price against a prospective buyer that had previously examined Celsius's finances and had been active in lending-sector rescue discussions.
Third-order effects
The episode illustrates how crypto-sector rescues can concentrate around a few well-funded intermediaries, while leaving the wider market exposed when the rescuer's funding depends on unfinished financing.
FTX's later shortfall shows that lender bailouts and asset purchases cannot be separated from scrutiny of the buyer's own liquidity, a dynamic likely to reshape confidence in crypto rescue capital.
The trend: Crypto distress is concentrating asset sales and emergency financing around dominant intermediaries, but the durability of that model depends on transparent funding at the would-be rescuer.
What's interesting is that FTC is focused on acquiring lending platforms & not any other crypto infra or services. Perhaps that's left to FTX ventures & Almadea
“Crypto Billionaire Sam Bankman-Fried Eyeing Bid for Celsius Assets - Bloomberg” Seems like @SBF_FTX were waiting for @Mashinsky to make his move. https://www.bloomberg.com/...
>The most graceful way of resigning >After losing countless amount of money >From poor people trying to get a yield on their ever-inflating fiat >Is to post a link to your PR on https://businesswire.com/ >And nothing else. https://twitter.com/...
“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” @Mashinsky said in his resignation letter
Alex Mashinsky's letter of resignation reads: Effective immediately, please accept my resignation as CEO of Celsius Network Ltd, as well as my directorships and other positions at each of its direct and indirect subsidiaries, with the exception of my director position at
Celsius CEO Mashinsky just announced he's quitting. This criminal ran a massive Ponzi scheme, and is now probably going to retire on his mega yacht. Lock him up! https://twitter.com/...
🤨 crypto CEO resignations in past week (sure, each situation is different, but): Kraken CEO Jesse Powell Celsius CEO Alex Mashinsky FTX US CEO Brett Harrison
Thank you for doing the right thing @Mashinsky - time to move forward with recovery plans in a unified productive manner. This removes many hurdles & the community can all focus on the real goal - #DepositorsFirst 🙏 https://twitter.com/...
Alex Mashinsky has resigned from his Celsius scheme. Would not be surprised to see an indictment in the coming months. https://www.businesswire.com/ ... https://twitter.com/...