Nexo offers to buy out Celsius’ loans amid withdrawal suspension
After “what looks to be the bankruptcy of the Celsius Channel,” the Nexo system may be able to save Celsius’ consumers.
There is a symbol of light for the most current casualty of the bearish trend. Nexo is proposing a buyout amid accusations that Celsius is bankrupt.
Nexo is striving to do the “correct thing” since they are “conscious of the ramifications for individual investors & the cryptocurrency industry,” according to a Nexo spokesman.
On Monday, all system transactions were halted, and customers could not retrieve their cash. Nexo has offered a firm offer to purchase eligible properties of Celsius Network following their removal freeze in an open letter. The letter reads as follows:
“Subject to Nexo’s risk assessment and security restrictions, Nexo, its clients, and subsidiaries might easily buy from Celsius portion or all eligible, existing securitized loan debts guaranteed by their matching pledged bitcoin collateral.”
In a nutshell, the Nexo team would take over all of Celsius’ loans while also gaining access to its client portal. The Nexo team has given the Celsius group seven days to reply, as the offer will expire on June 20.
Nexo’s initial call for assistance was refused by the Celsius group on June 12 after a chaotic week of market movement:
“We went out to the Celsius team last night [June 12] to give our assistance, but we were turned down.”
Comparable declarations have been issued by rivals such as Ledn, a Bitcoin-only (BTC) savings and loans product marketplace, to reassure consumers. Ledn stated in a tweet that clients’ money is safe. BlockFi CEO Zac Prince stated that his company is up and running. Ledn, Nexo, and Blockfi have all already agreed to speak with Cointelegraph about their business strategies.
Nexo isn’t the only business that has stepped up to help Celsius. Cory Klippsten, the creator of Bitcoin-only market Swan Bitcoin (who had described earlier Celsius as dangerous), has given Celsius shareholders a “life raft.”
