Ripple Labs is Interested in Purchasing Bankrupt Celsius
- Ripple has been involved in a long legal faceoff with the SEC due to claims that the payment platform violated securities laws.
A spokesperson for blockchain payments company Ripple Labs Inc has confirmed the firm’s interest in purchasing the assets of the bankrupt crypto lender, Celsius. This news comes amidst Ripple’s legal battles with the US Securities and Exchange Commission.
The spokesperson did not confirm the extent of Ripple’s interest in purchasing Celsius, but instead said,
We are interested in learning about Celsius and its assets, and whether any could be relevant to our business.
The San Francisco-based payment firm is actively exploring M&A opportunities, according to a spokesperson. Ripple’s interest in purchasing Celsius’s assets comes hours after Californian regulators banned the crypto lender from selling its securities in the state. Celsius, which was one of the popular lending platforms during the bull market, froze withdrawals in June due to “extreme” market conditions.
The New Jersey-based firm later filed for bankruptcy. Assets listed in bankruptcy documents for Celsius include loans, digital assets kept in custody accounts, a bitcoin mining operation, the firm’s own CEL token, as well as cash in the form of bank deposits and cryptocurrencies.
Representatives for Ripple submitted documents to the bankruptcy court last week in an effort to be represented in the hearings. The filing was accepted by the court earlier this week. According to Celsius’ bankruptcy filings, Ripple is not one of the company’s significant creditors.
Ripples and Its Legal Battles
Ripple has been involved in a legal battle with the SEC over claims that Ripple, its CEO Brad Garlinghouse, and executive chairman Chris Larsen sold XRP, a cryptocurrency the business both operates commercially and is closely affiliated with, in violation of securities laws.
The payment company strongly denied such claims by the SEC, arguing that XRP should be recognized as a virtual currency instead of an investment contract similar to a stock. Ripple’s CEO, Brad, has previously expressed his confidence that his side would emerge victorious in the legal dispute with the SEC.
According to Brad, Ripple’s victory would be a huge win for the entire crypto industry. He previously said,
This case is important, not just for Ripple; it’s important for the entire crypto industry in the United States,” he said. “It would really be negative for crypto in the United States.
According to the Ripple boss, Ripple’s loss would mean that most tokens trading on platforms in the U.S. would be considered securities. So, such platforms would need to register with the SEC as broker-dealers.
Ripple recently scored a huge win in its case against the SEC after a court ruled against the commission’s request to keep documents relating to the Hinman speech secret.