Goldman Sachs is looking for $2 billion in investor capital to buy Celsius, a troubled cryptocurrency lender. According to trustworthy sources.
Since announcing a halt to all withdrawals from the platform, which triggered the extreme market conditions, Celsius has been on the verge of collapse; the disclose exacerbated those conditions, briefly driving bitcoin to under $20,000.
In the event that Celsius declares bankruptcy, the arrangement allows investors to purchase Celsius’s assets at substantial discounts.
According to a source familiar with the matter, Goldman Sachs appears to be gauging interest and soliciting pledges from Web3 crypto funds, distressed asset funds, and traditional financial institutions with sufficient resources on hand.
According to The Wall Street Journal, Celsius has already hired a law firm, Akin Gump, and a restructuring consultancy, Alvarez and Marshal. Celsius also sought the help of Citigroup, a global investment firm, to provide guidance on potential solutions.
According to sources, Akin Gump and Citigroup advised Celsius to declare bankruptcy. Akin Gump has yet to respond, while Citigroup has declined to comment.
Last year, Celsius raised $750 million from investors, including Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund, valuing the company at $3.25 billion.