Celsius Network Reiterates Commitment to Restoring Operations Amidst Rumors a $2B Deficit Discouraged FTX From Bailing it Out

Summary:

• FTX reportedly walked away from a potential deal with Celsius Network after analyzing the latter’s finances.
• Celsius Network allegedly had a $2 billion deficit on its balance sheet at the time of the talks with FTX.
• Celsius Network team has since issued a statement reiterating their commitment to restoring liquidity and operations.

The Sam Bankman-Fried-led crypto exchange of FTX reportedly walked away from providing financial support or making a deal with representatives of the Celsius Network after viewing the latter’s balance sheet.

According to a report by the team at The Block, Celsius Network was in a financial hole to the tune of $2 billion at the time of talks with FTX. The financial deficit consequently discouraged FTX from offering some type of financial assistance to the struggling crypto lending firm.

At the time of writing, neither representatives from FTX nor Celsius NEtwork have commented on the matter.

Celsius Network Team Reiterates Commitment to Stabilize Liquidity and Operations.

Earlier today, the team at Celsius released a statement via their blog reiterating that the team remains committed to stabilizing liquidity and operations. They explained:

We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues.

These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines.

A Brief History of Recent Happenings At Celsius Network

It has now been over two weeks since the team at Celsius Network paused withdrawals on the platform, citing the ongoing market volatility as the main reason for doing so. Within the same time frame, Celsius Network has hired advisors to figure out potential company restructuring and a possible bankruptcy filing.

Additionally, the lending platform’s CEO was rumored to have attempted to flee the United States only to be barred by authorities.

CEL Token Continues to Tumble in the Crypto Markets.

Concerning the value of the CEL token, the digital asset has continued to decline in the crypto markets due to the ongoing financial owes of Celsius Network, as seen in the following one-day chart.

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