According to Fortune data, Goldman Sachs is funding $2 billion to buy the assets of struggling crypto creditor Celsius as it nears bankruptcy. Although Celsius cannot enter bankruptcy, users of Goldman Sachs will be allowed to purchase their holdings at lower prices.
Meanwhile, Celsius has reportedly hired more restructuring lawyers from consulting company Alvarez & Marsal.
Goldman Sachs wants to buy Celsius at a very low price
The Goldman Sachs Web 3 crypto fund is receiving interest and promises from troubled investment financing and standard finance companies, according to what Fortune published today, according to individuals familiar with the situation.
Furthermore, Goldman Sachs is already expanding its presence in the cryptocurrency space. For example, Goldman Sachs is in talks with the FTX cryptocurrency exchange about launching leveraged derivatives trading.
Furthermore, FTX is now committed to supporting other crypto enterprises, such as BlockFi and Voyager Digital, which are facing liquidation.
In contrast, the Wall Street Journal announced on June 25 that digital currency financier Celsius had recruited consultancy firm Alvarez & Marsal to prepare for a future bankruptcy case.
In addition, Citigroup and Akin Gump Strauss Hauer & Feld, recruited by Celsius this week, suggest the company files for bankruptcy.
Withdrawals, swaps and exchanges across various accounts, Celsius must continue to cooperate with the authorities and administrators. Sadly, Celsius’ efforts to resolve the liquidity issues appear unsuccessful.
Celsius recently sold its stETH assets and removed its ETH holdings from Bancor’s liquidity pool. The rehabilitation strategy of the industry has also flopped.
Short-sellers of CEL, the parent coin of Celsius, covered their bets yesterday, June 24, driving up prices with massive takeovers and withdrawals from multiple exchange platforms.
Investors to sue Celsius
Celsius has been surrounded by a number of issues and has been involved in disputes filed by traders over the company stopping withdrawals. BitBoyCrypto.com founder Ben Armstrong has cautioned that a class-action complaint targeting Celsius is in process.
Looking at everything, bankruptcy may be Celsius’ only choice.