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

People familiar with the matter said that earlier this week that Celsius is fighting a Chapter 11 bankruptcy filing, which is a recommendation from its lawyers. Instead, the firm has been looking for user support to help it win the internal argument against its own legal counsel.

Celsius was created in 2017 by CEO Alex Mashinsky and swiftly flourished by promising users attractive interest rates. The firm attracted high-profile investors such as Caisse de dépôt et placement du Québec (CDPQ), a Canadian pension fund, and WestCap, a growth equity firm. It raised $750 million last year at a valuation of $3.5 billion.

While FTX has opted to abandon Celsius, the exchange giant is still interested in competing crypto lender BlockFi. As previously reported, FTX is looking to buy BlockFi altogether after giving the company with a $250 million revolving credit facility.