Celsius Network hires advisers to prepare for possible bankruptcy – WSJ

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The Celsius network logo and representations of cryptocurrencies are seen in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

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June 24 (Reuters) – Celsius Network LLC has hired restructuring consultants from advisory firm Alvarez & Marsal to advise them on a potential bankruptcy filing, the Wall Street Journal reported Friday, citing people familiar with the matter.

The New Jersey-based cryptocurrency lending company froze withdrawals and transfers earlier this month due to “extreme” market conditions, in the latest sign of a financial market downturn hitting the cryptosphere. Read more

A separate report from CoinDesk said Friday that Wall Street bank Goldman Sachs (GS.N) was seeking to raise $2 billion from investors to buy troubled assets from Celsius.

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The proposed deal would allow investors to buy the assets at potentially steep discounts if the cryptocurrency lender files for bankruptcy, according to the report, which cites two people familiar with the matter.

Celsius had $11.8 billion in assets as of last month. The company and Alvarez & Marsal did not immediately respond to Reuters requests for comment. Read more

The digital asset market has been rocked in recent months by extreme volatility, with investors shedding risky assets over fears that aggressive interest rate hikes to tame stubborn inflation could push the economy into recession.

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Reporting by Manya Saini in Bangalore; Editing by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

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