Celsius Is Rumored To Be Preparing To Liquidate Assets

Nearly 2 weeks since blocking user withdrawals, Celsius lending platform has not found a way out of its crisis.

According to the Wall Street Journal, crypto lending platform Celsius has hired Alvarez & Marsal, a law firm, to help with its current situation. The source of the newspaper added that the purpose of the action was to serve “the process of restructuring the company”.

Previously, CoinCu also cited a source confirming that Celsius had hired an American bankruptcy law firm to advise on the next move.

In addition, there is also information that the US banking group Goldman Sachs is also interested in buying Celsius’s assets and is calling for $2 billion from investors who want to participate.

The current crisis is caused by the company losing liquidity because of its excessive holdings of stETH tokens, the locked-down version of ETH on the Lido staking platform. As the price of ETH fell and stETH sold off during the mid-June period, users rushed to withdraw from Celsius, making the situation increasingly dire.

Since blocking user withdrawals, the company has provided very little information about its situation, as well as being vague about when to resume operations.

In the latest post on June 20, Celsius stated that it is still in the process of counting and stabilizing the company’s liquidity, and that “it will take more time”. The company also said that it is in the process of talking with financial officials and regulators to find a solution.

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Harold

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