According to “two people familiar with the matter,” crypto lending firm Celsius is working with financial giant Citigroup to seek advice on how to handle the firm’s financial difficulties. Sources reveal that Citigroup was hired by Celsius to help the company find “potential financing”.
Sources say Celsius is seeking help from Citigroup
Three days ago, Bitcoin.com News reported on crypto lending company Celsius halting withdrawals and speculation and rumors surrounding the firm. Speculators believe the startup may go bankrupt because the company is very silent about what is happening.
On June 15, after a few days of silence, Celsius CEO Alex Mashinsky said, tweeted about the situation. ,[The Celsius] The team is working continuously. We are focused on your concerns and are grateful to hear from so many people,” Mashinsky said. “Seeing you coming together is a clear sign that our community is one of the strongest in the world. This is a difficult moment; Your patience and support means the world to us.”
Bitcoin.com News also reported on the company reportedly seeking reorganization lawyers. A Wall Street Journal report quoted “people familiar with the matter” as saying that Celsius was reportedly working with the law firm Akin Gump Strauss Hauer & Feld LLP. Both the companies declined to comment on whether restructuring is being planned.
In addition, Ben Armstrong – also known as “Bit Boy” on Youtube – is reportedly bringing a class action against Celsius. “Today we will start the process of bringing a class action suit against [Celsius Network] And [Alex Mashinsky]”armstrong” Told,
On Wednesday, The Block reported that Celsius may be seeking help from Citigroup. Two sources “familiar with the matter” indicated that the financial giant is being hired in “an advisory capacity” and the source says Citigroup is not offering Celsius funds. “It’s not like Citi is going to give money to Celsius from its balance sheet,” the source was quoted as saying.
According to Yogita Khatri, writer for The Block, the news publication reached out to Citigroup and the financial firm declined to comment. So far, it has been more than three days since Celsius halted withdrawals, and clients have not had access to their funds since the downtime began.
What do you think of Celsius reportedly working with Citigroup for advisory purposes? Let us know what you think about this topic in the comment section below.
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