Two days after crypto lending platform Celsius ceased operations at 10:10 PM ET on June 12, the Wall Street Journal (WSJ) reported that Celsius has restructured its quoted “sources” who said it was hiring lawyers. At the time, the WSJ said that Celsius was considering hiring Akin Gump Strauss Hauer &, a law firm specializing in bankruptcy and restructuring. Feld LLP, it said. However, in a new WSJ report, sources say that Celsius is now working with restructuring advisory firm Alvarez&. Marsal.
Sources Say Celsius May Be Collaborating With a Restructuring Advisory Firm
The current financial status of cryptolending company Celsius is still unknown, and since June 12, people still suspect the company is insolvent.Bitcoin.com News reported on the rumors and speculation surrounding the company to date, and on June 13, cryptolending company Nexo offeredto purchase Celsius-based assets.
Celsius is suspected to be in financial difficulties because of the company’s June 12 tweet.” Due to extreme market conditions, today Celsior announces that it is suspending all withdrawals, swaps, and transfers between accounts,” Celsiorrevealed. There was also speculationabout Celsior having leverage of 17,919 WBTC in manufacturer protocols that faced liquidation.
On June 14, the WSJ reported that Celsior was considering hiring the restructuring law firm Akin Gump Strauss Hauer & Feld LLP. The report said that the company is trying to hire Feld LLP.” People familiar with the matter” explained that Celsius was first trying to get support from investors. At the time, Akin Gump did not comment on the matter when asked if the company was involved with Celsius. Now, another WSJ reportsays that Celsius may be working with restructuring advisory firm Alvarez&Marsal.
Goldman Sachs Has Eyes on Celsius Network Assets
Sources claim Goldman Sachs has eyes on Celsius Network assets
Further Tracy Wang of Coindeskreported that “Goldman Sachs is trying to raise $2 billion from investors to buy bad assets from troubled crypto lender Celsius”Wang said the information was “two people familiar with the matter He detailed that the information originated from “two people who are familiar with the issue. 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 a potentially large discount in the event of a bankruptcy filing.”
The Reuters report further detailed that the U.S. Securities and Exchange Commission (SEC) and state regulators are investigating Celsius over the account freeze. Otheraccountsreport that Akin Gump and financial giant Citigroup have recommended that Celsius file for bankruptcy; reports discussing the alleged Akin Gump and Citigroup recommendations say both companies have declined to comment on the matter.
After Celsius suspended withdrawals, there has been little word from the company other than ablog posttelling the Celsius network community that the company’s “objective continues to be liquidity and operational stability.” Celsior added that “the process will take time,” but the post did not elaborate on what process it meant. In the comments section, Celsius is much criticized on this issue.
“Basically you have not added anything to what you have already said. Because, in and of itself, there is very little already,” one person wrote in response to the company’s statement. Said another, “The lack of transparency is very concerning.” Choosing Celsius was the worst choice of my life,” a Medium user called “Crypto Cooper” wrote five days ago.CEL, the native token of the Celsius Network, is down 80.9% over the past 12 months, 86.3% below the asset’s all-time high. 3% lower.
What do you think about reports that Goldman Sachs is reportedly looking to buy distressed assets from crypto lender Celsius? Let us know what you think about this subject in the comments section below.
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