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Two days later, the Wall Street Journal (WSJ), citing “people familiar with the matter,” said Celsius was hiring restructuring lawyers after crypto lending platform Celsius ceased operations at 10:10 p.m. ET on June 12. At the time, The Wall Street Journal said Celsius was seeking to hire bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP. However, a new report in the Wall Street Journal says Celsius is currently working with restructuring consultancy Alvarez & Marsal, sources said.
Celsius may be working with a restructuring consultancy, sources say
The current financial status of crypto lending firm Celsius remains unknown, and since June 12, suspicions of the company’s insolvency remain. Bitcoin.com News reports on the rumors and speculation surrounding the company so far, on June 13, crypto lending firm Nexo supply Buy Celsius-based assets.
The reason for the suspicion that Celsius is struggling financially is the company’s June 12 tweet. “Due to extreme market conditions, today we announce that Celsius will suspend all withdrawals, swaps and transfers between accounts,” Celsius disclose. also have speculation About Celsius utilized 17,919 WBTC in the Maker Protocol facing liquidation.
On June 14, a Wall Street Journal report said Celsius was seeking to hire Akin Gump Strauss Hauer & Feld LLP, a restructuring law firm. “People familiar with the matter” explained that Celsius tried to get help from investors first. At the time, Akin Gump was not available for comment when asked if the company was involved in Celsius. Now, another WSJ report says Celsius may be working with restructuring consultancy Alvarez & Marsal.
People familiar with the matter claim Goldman Sachs eyeing Celsius network assets
Additionally, Coindesk’s Tracy Wang reports that “Goldman Sachs is looking to raise $2 billion from investors to buy distressed assets from troubled cryptocurrency lender Celsius.” Wang detailed that the information came from “two people familiar with the matter. people”. The report goes on to explain that two sources said the proposed Goldman deal “would allow investors to buy Celsius assets at a potentially steep discount in the event of a bankruptcy filing.”
A Reuters report further detailed that the U.S. Securities and Exchange Commission (SEC) and state regulators are investigating Celsius over account freezes. Other accounts say Arkin Gump and financial giant Citigroup told Celsius they advised it to file for bankruptcy. The report discussing the alleged recommendations of Akin Gump and Citigroup said both companies declined to comment on the matter.
After Celsius suspended withdrawals, there wasn’t much news from the company other than a blog post telling the Celsius Network community that the company’s “goal continues to be to stabilize our liquidity and operations.” Celsius added that “this process will take time,” but the post did not elaborate on what type of process it meant. In the comments section, Celsius has received a lot of criticism on this issue.
“Basically you’re not adding anything to what you’ve already said. By itself, that’s very little,” one individual wrote in response to the company’s statement. “The lack of transparency is very concerning,” another said. “Choosing Celsius was the worst choice of my life,” wrote a Medium user by the name of “Crypto Cooper” five days ago. CEL, Celsius Network’s native token, is down 80.9% over the past 12 months and is 86.3% below the asset’s all-time high.
What do you think of reports that Goldman Sachs is looking to buy distressed assets from cryptocurrency lender Celsius? Let us know what you think about this topic in the comments section below.
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