The global investment bank, Goldman Sachs, is considering buying some Celsius assets.
In context, Celsius, which had lent more than $ 8 billion to clients and $ 12 billion in assets under management as of May 2022, announced on June 12 that it would stop withdrawals from its platform, stating “conditions the extreme market.
«Celsius, pausing all withdrawals, redemptions and transfers between accounts. Our top priority is to act for the good of our community. Our operations continue and we will continue to share information with the public».
In this regard, the CEO of Celsius, Alex Mashinsky, said the team is working hard to resolve it. «This is a difficult time. Your patience and support means the world to us.».
Currently, according to two people familiar with the matter, Goldman Sachs is seeking to raise $ 2 billion from investors to buy distressed assets from a troubled Celsius Celsius crypto lender.
Celsius on the verge of bankruptcy
According to information The Wall Street Journal, Celsius, could be on the verge of bankruptcy. This is to hire consultants from the firm Alvarez & Marsal, which is responsible for providing management consulting. Meanwhile, customer withdrawals are still frozen.
Incidentally, in addition to hiring Alvarez & Marsal, Celsius turned to law firm Akin Gump Strauss Hauer & Feld for advice on possible restructuring options. Also, the global investment bank Citigroup has been buried employees at Celsius to advise on possible solutions.
Goldman Sachs is looking to Buy Crypto Lender Assets
So US bank Goldman Sachs wants to raise $ 2 billion from investors. To purchase disturbed assets of Celsius Network LLC.
In any case, the agreement would allow investors to buy Celsius assets at deep discounts, should it go bankrupt. However, according to the source, the assets could be purchased even if the lender does not file for bankruptcy.
As a result, a schedule would be drawn up outlining the order in which creditors would be paid. There are no guarantees, but investors expect to receive their rewards sooner.
In particular, the decision would put Goldman Sachs square in the growing pool of traditional financiers looking to profit from buying cryptocurrencies and stocks. In addition to debt refinancing, from crypto investment firms.
Finally, it remains to be seen whether Celsius will agree to the deal with Goldman Sachs.
I close with this sentence from Gary Gensler: «Many cryptocurrency lending platforms own your asset in some omnibus joint account.».
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