After assessing the status of Celsius’s finances, FTX turned away from a deal

According to two persons familiar with the situation, crypto exchange operator FTX considered partnering with ailing crypto lender Celsius but ultimately declined.

According to the sources, FTX began discussions with Celsius about providing financial support or making an acquisition, but decided against proceeding after reviewing Celsius’s finances. According to one of the individuals, Celsius had a $2 billion hole in its balance sheet, and FTX found the company difficult to deal with.

Since halting all withdrawals on June 12, claiming “extreme market conditions,” Celsius has been fighting for survival. Client funds have been frozen ever since. In May, Celsius claimed 1.7 million customers and around $12 billion in assets under management.

Celsius has kept practically silent in the midst of its financial difficulties. Its most recent official report was published on June 19, when the company stated its goal “Our liquidity and operations are still being stabilized. This procedure will take some time.”

Celsius has hired Wall Street behemoth Citigroup to assist it on its financial choices, and the lender is dealing with restructuring advisers from Alvarez & Marsal.