According to “two people familiar with the matter,” the cryptocurrency lending company Celsius is working with the financial giant Citigroup in order to get advice on how to handle the firm’s financial hardship. The sources note that Citigroup was hired by Celsius to help the company find “potential financing.”
Citigroup Help Wanted by Celsius, Sources Tell Us
Bitcoin.com News reports that Celsius has stopped withdrawing funds and queried rumors about the company. Speculators believe the startup may be insolvent as the company has been very quiet about what’s going on.
Alex Mashinsky was appointed CEO of Celsius in June 15 after several days of silence. tweetedAbout the situation. “[The Celsius]Our team works non-stop. We’re focused on your concerns and thankful to have heard from so many,” Mashinsky said. “To see you come together is a clear sign our community is the strongest in the world. This is a difficult moment; your patience and support mean the world to us.”
Bitcoin.com News reported that the company was looking for restructuring lawyers. A Wall Street Journal report, quoting “people familiar with the matter,” explained that Celsius was reportedly working with the law firm Akin Gump Strauss Hauer & Feld LLP. Both firms refused to say if restructuring is in the works.
Furthermore, Ben Armstrong — also known as “Bit Boy” on Youtube — is allegedly bringing a class action against Celsius. “Today we will begin the process of bringing a Class Action Lawsuit against [Celsius Network] [Alex Mashinsky],” Armstrong said.
The Block reported on Wednesday that Celsius could be looking to Citigroup for assistance. Two sources “familiar with the matter” indicated that the financial giant is being hired in “an advisor capacity” and the source says Citigroup is not offering Celsius funds. “It’s not like Citi is going to give Celsius money out of their balance sheet,” the source is quoted as saying.
Yogita Khatri (author of The Block) stated that The Block reached out to Citigroup but the financial institution declined to comment. So far, it’s been over three days since Celsius halted withdrawals, and customers have not had access to their funds since the downtime started.
How do you feel about Celsius working for Citigroup? Please comment below on your views.
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