Celsius Decisions After Freezing Transfers and Withdrawals Could Affect the Crypto Sector as a Whole
Celsius Decisions After Freezing Transfers and Withdrawals Could Affect the Crypto Sector as a Whole
Celsius Network LLC has hired restructuring consultants from consulting firm Alvarez & Marsal to advise on a potential bankruptcy filing, the Wall Street Journal reported Friday, citing people familiar with the matter.
New Jersey-based cryptocurrency lending company Deposit Withdrawals and Transfers Due to “excessive” market conditions earlier this month, in the latest indication of financial Market A downturn in the cryptosphere.
A separate report from CoinDesk said on Friday that Wall Street bank Goldman Sachs was looking to raise $2 billion from investors to buy the troubled asset from Celsius.
The proposed deal would allow investors to buy assets at potentially large discounts if the cryptocurrency lender files for bankruptcy, according to the report, which cites two people familiar with the matter.
As of last month, Celsius had assets of $11.8 billion. The company and Alvarez & Marsal did not immediately respond to Reuters requests for comment.
The market for digital assets in recent months has been troubled by extreme instability Because investors dump riskier assets out of fear that aggressive interest rate hikes to beat stubborn inflation could propel the economy into recession.