Sam Bankman-Fried was arrested in the Bahamas, where he had made his base, on a request by US prosecutors.
Bitcoin - the benchmark cryptocurrency rose 6% initially following the announcement of the Binance takeover, but then dived in the red as FTX’s balance sheet and contagion worries gripped investors.
The offer to buy Celsius's assets ends on June 20.
The firm,led by American entrepreneur Alex Mashinsky had about $12 billion in customer assets as of May across 1.7 million users.