Crypto lending platform Nexo (CRYPTO:NEXOY) has offered to buy the assets of rival Celsius (CRYPTO:CEL) after the latter announced a pause on all withdrawals, trades and transfers between accounts due to ” extreme market conditions”.
Offer to buy Celsius assets ends June 20
Nexo said it was in a strong liquidity and capital position to easily acquire all of Celsius’ remaining eligible assets, primarily their secured loan portfolio and that yesterday it contacted the Celsius team to offer its support, but help was refused.
“The Nexo team has never applauded the failure of a blockchain business, but we have warned that operating a sustainable business model based on careful risk management is what sets Nexo apart and enables us to maintain financial stability in all market circumstances,” the company said on Twitter.
He further claimed that Nexo was the first and only blockchain finance company to have a real-time audit of its assets in custody, showing that the company’s assets exceed its liabilities at all times.
The crypto lending firm has drafted a formal letter of intent to acquire the remaining eligible assets, primarily secured loans secured by matching collateral assets, branded assets, and the firm’s customer database.
The price of Celsius’ native Celsius token is currently down 50% to $0.20 per token, according to data from Coinmarketcap.
According to social media speculation, Celsius has released $247 million from Wrapped Bitcoin (CRYPTO:WBTC) of (CRYPTO: AAVE) and sent it to the FTX exchange. Additionally, large amounts of Wrapped Bitcoin (WBTC), Ethereum (CRYPTO: ETH)and other cryptocurrencies were moved while simultaneously suspending withdrawals for users.
In unusual moves, cryptos from Celsius’ DeFi messaging wallet began moving liquidity to FTX at 6:00 p.m. ET on June 12, as WBTC was removed from Celsius’ main staking and lending platform AAVE. The company had earned interest on its deposits stored in its DeFi wallet.
Users claim that 9,500 WBTC tokens worth $247 million were moved from Aave to the FTX exchange. The movement of liquidity was unknown and unspecified by the Celsius network.
According to users, 9,500 WBTC tokens worth $247 million were moved from AAVE to the FTX exchange. Additionally, 54,749 Ethereum worth $74.5 million were transferred to FTX.
While demanding answers on the movement of funds, users further claim that Celsius’ board is not transparent in their dealings.
The company, as a whole, was accused of moving $320 million in cash to the FTX exchange.
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