Nearly three weeks after Celsius Network suspended cash withdrawals and other operations from its platform, questions are mounting about its future.
Behind-the-scenes activities are also increasing. The crypto firm hired Alvarez & Marsal, a restructuring consultancy. Celsius tapped restructuring attorneys at law firm Akin Gump Strauss Hauer & Feld.
But the most interesting news is that Goldman Sachs (gs) – Acquisition of Goldman Sachs Group Inc. (d) According to reports from Fortune and Coindesk, Celsius is trying to raise $2 billion from investors to buy troubled assets.
The goal is clearly to allow investors to purchase Celsius assets at a lower price in the event of company bankruptcy.
According to Fortune, which cites unnamed sources familiar with the matter, Goldman Sachs has been looking at crypto firms and Web3 firms, the new iteration of the internet, as well as traditional financial institutions and companies specializing in restructuring.
Goldman Sachs did not immediately respond to a request for comment.
Another offer is on the table
On June 12, Celsius announced it would indefinitely suspend various transactions, including withdrawals, “due to extreme market conditions.”
“Today we are announcing that Celsius is suspending all withdrawals, exchanges and transfers between accounts,” the company said at the time. “We are taking this action today to better enable Celsius to meet its return obligations over time.”
Celsius is a cryptocurrency lending platform. The company allows anyone to borrow cryptocurrencies and earn interest for lenders. “Earn a lot. Borrow low. Change the world,” says the company’s website. One of his catchphrases is “borrow like a billionaire”.
Celsius promises “financial rewards” of up to 30% additional weekly returns through its CEL token. However, some options are not available for US-based users.
Celsius Network raised its valuation to $3 billion last October when it raised $400 million from investors led by Westcap and Canada’s Cais de d’épet du Québec (CDPQ). The company aims to be an intermediary between traditional finance and the crypto space.
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The company, which operates like a traditional bank, had more than $8.20 billion in loans to customers, $11.82 billion in assets under management and more than 2 million customers as of May 17 this year, according to its website. .
Celsius has over 200 employees working from offices in New Jersey, London, Tel Aviv, Cyprus and Serbia, the company said.
Long before Goldman Sachs, crypto firm Nexo AG offered to buy Celsius’ ailing assets.
“In light of @CelsiusNetwork’s bankruptcy and the impact it is having on its retail investors and the crypto community, Nexo has made a formal offer to acquire @CelsiusNetwork’s qualifying assets,” the firm wrote on Twitter. With a link to the letter to Celsius.
“Nexo’s underlying sustainable business model enables it to maintain financial stability in all market conditions and as a result, the company is in a solid liquidity and equity position to help mitigate the impact of Celsius’ difficult position. ‘ the potential buyer wrote in his letter of intent.
Citigroup was also recruited by Celsius to advise on possible solutions, The Block reported.
According to the report, both Citigroup and Akin Gump recommended Celsius’ bankruptcy.
Except for a flat message on June 19, Celsius has been silent so far.
“We want our community to know that our goal is to continue to stabilize our liquidity and operations,” the company said. “This process will take time.”
“We are pausing our Twitter and AMAs to focus on meeting these unprecedented challenges and fulfilling our responsibilities to our community.”
Celsius Network’s financial troubles helped dampen investor confidence in the cryptocurrency industry, compounding and somewhat stagnant the market crash a few days ago.
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