thenewscrypto.com
- Celsius had more than $8 billion lent to clients and $12 billion in assets.
- All of Celsius’ assets might be bought by Goldman Sachs.
The Wall Street firm Goldman Sachs is looking for $2 billion in commitments from investors to purchase distressed assets at significant discounts.
According to the source, Goldman Sachs is seeking to raise $2 billion from investors to purchase digital assets from struggling crypto lender Celsius. In the event Celsius filed for bankruptcy, the proposed transaction would permit investors to purchase its assets at possible significant discounts, according to the sources.
$GS reportedly raising $2B to acquire Celsius Network assets
— Market Rebellion (@MarketRebels) June 24, 2022
GS might get benefit from Celsius
A schedule indicating the order in which creditors are paid would be made after filing for bankruptcy. There are no guarantees, but investors will hope to receive their rewards first.
Celsius has received bankruptcy filing recommendations from both Citigroup (C) and Akin Gump. Citigroup decided not to respond. An inquiry for comments was not immediately answered by Akin Gump.
On June 12, Celsius, which as of May this year had more than $8 billion lent to clients and $12 billion in assets under management, said it would no longer allow withdrawals from its platform due to “extreme market conditions.”
These situations were made worse by the announcement, which temporarily caused bitcoin to trade below $20,000. On the same day rival exchange Nexo made celsius an uninvited offer however, it was rejected.
Celsius has also hired restructuring specialists from the law firm Akin Gump Strauss Hauer & Feld in addition to Alvarez & Marsal and including a review of a proposal from competitor cryptocurrency lender Nexo.
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