Nexo offers to buy out Celsius’ loans amid withdrawal suspension

cointelegraph.com:

There’s a glimmer of hope for the bear market’s most recent victim. Following reports that Celsius is insolvent, Nexo is offering a buy-out.

A Nexo representative told Cointelegraph that Nexo is trying to do the “right thing” as they are “mindful of the repercussions for retail investors & the crypto community.”

Celsius suspended all network withdrawals on Monday; users are not able to access their funds. In an open letter, Nexo has extended a formal offer to acquire qualifying assets of Celsius Network after their withdrawal freeze. The letter states:

In a nutshell, the Nexo team would absorb all of Celsius’ loans and gain its customer database. The Nexo team has allowed seven days for the Celsius team to respond, as the proposal will terminate on June 20.

In a tumultuous weekend of market action, Nexo’s first call to help was rejected by the Celsius team on June 12:

Separately, Nexo has reassured investors that funds are safe. The Nexo representative told Cointelegraph it was “the first crypto lender to publicly open its books to the public in real time back in September and invited all our competitors and responsible crypto platforms to follow our lead.”

Competitors including Ledn, a Bitcoin-only (BTC) credit and savings product platform have released similar statements to spread calm among investors.  In a tweet, Ledn shared that customers’ investments are secure. BlockFi CEO Zac Prince tweeted that his business is operating normally.  Ledn, Nexo and Blockfi have been open to talking about their business models with Cointelegraph previously.

Related: Mashinsky says ‘Sharks of Wall Street’ circling around Celsius and other projects

Nexo is not the only company to come to the aid of Celsius. Bitcoin maximalist Cory