Celsius has enlisted Citigroup’s help in determining the next steps after suspending customer accounts on Sunday.
The Block revealed on Wednesday that the bitcoin lender had hired a traditional financial bank as an advisor. While Citigroup would not contribute funding directly to the crypto lender, it will outline prospective financing options, according to the article.
Citigroup would allegedly assist the project in evaluating proposals, including one from rival lender Nexo, which formally asked Celsius to acquire some of its troubled assets at the time Celsius was experiencing liquidity concerns.
Even before the lender officially admitted it, Nexo notified Blockworks it was aware of Celsius’s withdrawal issues and that its results pointed to the “unsustainability” of its operation.
According to Youwei Yang, director of financial analytics at StoneX, Celsius’ decision to halt customer withdrawals and transfers because to “extreme market conditions” caused a frightened crypto market sell-off reminiscent of Mt. Gox’s devastating bankruptcy in 2014. At the time, a breach at the Tokyo-based crypto exchange resulted in the loss of around 850,000 bitcoin, resulting in the firm’s demise.
The crypto lender suffered from a mix of poor risk management, unfavorable market circumstances, and overexposure to stETH, according to crypto research firm Kaiko, which put the firm into a “Lehman-esque” position.
“Even if they do survive this onslaught, I don’t see how anyone can trust the likes of Celsius to keep their assets safe going forward,” Conor Ryder, research analyst at Kaiko, wrote.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
CoinCu News
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
Sheetz crypto payments: 750+ US stores now accept Bitcoin, Ethereum, and more, rewarding customers through…
Zhu Su’s wife sells Singapore mansion for $38.5 million amid heightened financial scrutiny on Three…
Bitcoin Spot ETF Outflows Hit $54.9M on Nov 1, marking the first decline in a…
Analysts report that the XRP price and the Cardano price are displaying bearish indicators, while…
This website uses cookies.