Nexo offers Celsius takeover as rival lending platform halts withdrawals


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Cryptocurrency lending platform Nexo has expressed interest in buying some assets from rival Celsius after the lending platform said it was freezing withdrawals and transfers due to credit terms. extreme market.

In a letter to Celsius on Monday, Nexo said it was particularly interested in Celsius’ secured loan portfolio. Nexo published the letterwhich did not mention a price, in a tweet.

In a blog post earlier on Monday, Celsius announced that it would also be pausing its exchange and transfer products. He did not provide a timetable for the resumption of withdrawals. The announcement comes on top of Celsius telling unaccredited investors they can no longer transfer funds.

“We work with one goal: to protect and preserve assets to meet our obligations to customers,” Celsius said. “Our ultimate goal is to stabilize liquidity and restore withdrawals, swaps and transfers between accounts as quickly as possible. There is a lot of work ahead of us as we look at various options, this process will take time and it will take time. there may be delays.”

The cryptocurrency market has crashed in recent weeks amid a weak macroeconomic environment. Bitcoin (BTC) has declined for nearly 12 consecutive weeks, falling from nearly $49,000 in March 2022 to below $25,000. The total crypto market cap, which peaked at around $3 trillion in November, has fallen below $1 trillion today, according to data from TradingView.

In its letter, Nexo, based in Zug, Switzerland, said it was seeking to acquire assets “primarily or wholly loan receivables secured by corresponding collateral assets, as well as branded assets and the database clients”.

In an audit earlier Monday, Nexo said it had $6.2 billion in customer liabilities and held assets in excess of that amount.

The price of the NEXO token has fallen 22% in the past 24 hours amid a market-wide sell-off. Celsius’ CEL token lost more than 50% of its value following its announcement.

Celsius, which is headquartered in New Jersey and has a subsidiary in London, had not responded to requests for comment at the time of publication.

UPDATE (June 13, 08:45 UTC): Adds Nexo Letter of Intent, Nexo Responsibilities; delete the tweet saying that the offer letter was being prepared.

UPDATE (June 13, 09:54 UTC): Wraps the previous story on Celsius’s actions from the third paragraph; adds crypto market background.

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