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Celsius Network Employs Experts To Help It Prepare For Bankruptcy


25/06/2022


Celsius Network Employs Experts To Help It Prepare For Bankruptcy
Celsius Network LLC has hired restructuring advisors from Alvarez & Marsal to assist on a prospective bankruptcy file, according to the Wall Street Journal, citing people familiar with the case.
 
The bitcoin lending company based in New Jersey banned withdrawals and transfers earlier this month owing to "extreme" market conditions, the latest indicator of the financial market collapse affecting the cryptosphere. more info
 
Separately, CoinDesk reported on Friday that Wall Street firm Goldman Sachs was attempting to raise $2 billion from investors in order to purchase troubled assets from Celsius.
 
According to the story, which cited two people familiar with the subject, the proposed arrangement would allow investors to purchase the assets at potentially significant discounts if the bitcoin lender declared bankruptcy.
 
As of last month, Celsius has $11.8 billion in assets. Reuters queries for comment were not immediately responded to by the corporation or Alvarez & Marsal. more info
 
The market for digital assets has been roiled by severe volatility in recent months, as investors flee riskier assets on fears that aggressive interest rate hikes to manage stubborn inflation may send the country into recession.
 
Celsius has been at the heart of media talks about considerable market volatility, following the crypto lending platform's move to halt "all withdrawals, swaps, and transfers between accounts" on June 12. CEO Alex Mashinsky and other Celsius executives have been largely silent on social media since that announcement, with the platform announcing on June 19 that it would cease talks on "Twitter Spaces and AMAs" to focus on addressing operational concerns.
 
Following the platform's decision to suspend withdrawals, state authorities have focused their attention on Celsius. The Texas State Securities Board's director of enforcement division, Joseph Rotunda, stated on June 16 that regulators in Alabama, Kentucky, New Jersey, Texas, and Washington were "looking into the problem concerning the frozen accounts" at Celsius.
 
On June 20, Celsius investor and BnkToTheFuture co-founder Simon Dixon offered a recovery plan aiming at having the crypto loan site use a "financial innovation" solution, similar to Bitfinex in 2016. Celsius had a $3.5 billion valuation as of November 2021, following a $700 million Series B fundraising deal, which may have dropped given the recent market collapse.
 
(Source:www.cointelgraph.com)