FTX has withdrawn its support and purchase of Celsius

Cryptocurrency exchange FTX, after reviewing the financial records of Celsius, refused to financially support and buy the cryptocurrency lender.

Cryptocurrency exchange FTX declined to make a deal with troubled cryptocurrency lending platform Celsius, two sources familiar with the matter told The Block.

Both sources claim that the trading platform began talks with Celsius about cash support or a takeover, but after reviewing FTX’s financial history, they discovered $2 billion in debt on the cryptocurrency lender’s balance sheet. The exchange, realizing that it would face significant difficulties in restoring Celsius’ viability, refused to buy the platform or provide it with financial support.

FTX has not yet officially announced its refusal to cooperate with Celsius.

Since Celsius froze all withdrawals on June 12, citing “extreme market conditions,” the cryptocurrency lender has been struggling to survive.

Customer funds are still locked up on the platform.

In May, Celsius claimed 1.7 million customers and about $12 billion in assets under management.

Despite its financial problems, Celsius has not reported its distress for a long time. The last official update was issued June 19, when the company said its goal “remains to stabilize liquidity and operations. This process will take time.”

FTX appears to have chosen the less troubled BlockFi for support out of the two troubled companies and gave it a $250 million line of credit.