After the crypto lending platform Celsius halted operations on June 12, at 10:10 p.m. (ET), two days later the Wall Street Journal (WSJ) quoted “people familiar with the matter” who said Celsius was hiring restructuring lawyers. At the time, the WSJ said Celsius was looking to hire the bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP. However, a new report from the WSJ claims sources say that Celsius is now working with the restructuring advisory firm Alvarez & Marsal.
According to sources, Celsius may be working with a restructuring advisory firm
Celsius has not yet disclosed its financial position and many people suspect it is insolvent. Bitcoin.com News has reported the speculation surrounding the company and Nexo on June 13. offeredBuy Celsius-based assets
The reason why people suspect that Celsius is having financial hardships is because of the company’s tweet on June 12. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps, and transfers between accounts,” Celsius revealed. There’s also been speculationCelsius has 17,919 WBTC, leveraged by Maker protocol which was subject to liquidation.
On June 14, a WSJ report said that Celsius was looking to hire the restructuring law firm Akin Gump Strauss Hauer & Feld LLP. “People familiar with the matter” explained that Celsius was attempting to get help from investors first. Akin Gump didn’t comment when asked about Celsius. Now, another WSJ report says that Celsius may be collaborating with the restructuring advisory firm Alvarez & Marsal.
Some People Are Familiar with the Subject Claim Goldman Sachs Eyes on CZ Network Assets
Additionally, Coindesk’s Tracy Wang reported that “Goldman Sachs is looking to raise $2 billion from investors to buy up distressed assets from troubled crypto lender Celsius.” Wang detailed that the information stemmed from “two people familiar with the matter.” The report goes on to explain that the two sources said the proposed Goldman Sachs deal “would allow investors to buy up Celsius’ assets at potentially big discounts in the event of a bankruptcy filing.”
Reuters reported that both the U.S. Securities and Exchange Commission and the state regulators investigated Celsius’s account freeze. Others have reported that Citigroup and Akin Gump told Celsius they had recommended the bankruptcy filing. The report that discusses Akin Gump’s and Citigroup’s alleged recommendation said that both companies declined to comment on the subject.
After Celsius paused withdrawals, there haven’t been many words from the company except a blog post that tells the Celsius Network community that the company’s “objective continues to be stabilizing our liquidity and operations.” Celsius added that the “process will take time” but the post does not detail what type of process it meant. Celsius has been criticized heavily in the comments section for this issue.
“Basically you have added nothing to what you have already said. Which is, per se, very little already,” an individual wrote in response to the company’s statement. “The lack of transparency is very concerning,” another person said. “Choosing Celsius was the worst choice of my life,” a Medium user called “Crypto Cooper” wrote five days ago. CEL, the Celsius Network’s native token is down 80.9% during the last 12 months and 86.3% lower than the asset’s all-time high.
Do you agree with the reports that Goldman Sachs may be looking to buy distressed assets from Celsius, a crypto-lender? Comment below and let us know how you feel about the subject.
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