Troubled crypto lender Celsius Network has reportedly hired consultants to advise on a possible bankruptcy filing while a Wall Street giant was raising funds to buy its distressed assets.
Celsius Network has hired advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing, according to a «Wall Street Journal» report citing unnamed sources.
This follows the New Jersey-based crypto lender’s decision to freeze withdrawals and transfers earlier this month due to difficult market conditions. Other firms in the industry have also suffered challenges linked to recent market turmoil including Hong Kong-based Babel Finance and crypto-focused hedge fund Three Arrows Capital.
Goldman Deal
Separately, Goldman Sachs is looking to raise $2 billion to buy distressed assets from Celsius at potentially significant discounts should the crypto lender follow through and file for bankruptcy, according to a «CoinDesk» report citing unnamed sources.
As of end-May, Celsius had $11.8 billion in assets.
