Report: Celsius Hires Citigroup to Help the Startup Find ‘Potential Financing’

According to “two people familiar with the matter,” cryptocurrency lender Celsius is working with financial giant Citigroup to get advice on how to handle its financial difficulties. Sources note that Citigroup has been hired by Celsius to help the company find “potential financing.”

According to sources, Celsius is seeking help from Citigroup

Three days ago, Bitcoin.com News reported on speculation and rumors surrounding the company as crypto lender Celsius stopped withdrawals. Speculators believe the startup may be insolvent because the company has been very quiet about what is going on.

On June 15, after several days of silence, Alex Mashinsky, CEO of Celsius,tweetedabout the situation.” The [Celsius] team is working non-stop. We are paying attention to your concerns and appreciate the input we have received from so many of you,” Mashinsky said. It’s a testament to the fact that our community is the strongest in the world.” This is a challenging moment. Your patience and support means a lot to us.

Bitcoin.com News also reported that the company is reportedly seeking a restructuring attorney. A Wall Street Journal report, citing “people familiar with the matter,” explained that Celsius is reportedly working with the law firm Akin Gump Strauss Hauer &Feld LLP, and that the firm has been retained by Feld LLP. Both firms declined to comment on whether a restructuring is planned.

In addition, Ben Armstrong, also known as “Bit Boy” on Youtube, has reportedly filed a class action lawsuit against Celsior. “Today we begin the process of filing a class action lawsuit against [Celsior Network] and [Alex Mashinsky],” Armstrong said

On Wednesday, The Blockreportedthat Celsior may be seeking help from Citigroup. Two sources “familiar with the matter” indicated that the financial giant is being hired “in an advisory capacity,” and the sources said that Citigroup is not funding Celsior.” There is no such thing as Citi funding Celsior from its balance sheet,” the sources said.

According to Yogita Khatri, author of The Block, the news publication contacted Citigroup, and the finance company declined to comment. So far, more than three days have passed since Celsius stopped withdrawals, and customers have not been able to access their funds since the downtime began.

Image credit: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Artemenko Valentyn