Celsius Bankruptcy will benefit Goldman Sachs

Celsius Bankruptcy

There are interest accounts for cryptocurrency that have been around for a while. But in this field, very few people have made it to the top. Celsius has some of the best interest rates for putting money into a cryptocurrency account with protection from theft and can also manage this. 

You can also borrow Bitcoin or US dollars at rates that aren’t too high. You won’t have to pay anything extra when you use the Celsius app to send bitcoin to someone else.

How many degrees Celsius are there?

The Celsius platform is a way to lend cryptocurrency without going through a central bank. It started in the summer of 2017, and its first coin, which had the symbol “CEL” on it, came out in March of 2018. Alex Mashinsky, Nuke Goldstein, and S. Daniel Leon were the ones who came up with the idea for Celsius. Celsius’s main office is in London. The company has raised a total of $93.8 million through five funding rounds.

We’ll make it work everywhere else in the world so that anyone can start a business. Mashinsky told CoinCentral in an interview that his company helps people all over the world achieve the “American dream.”

Fortune says that Goldman Sachs is trying to get $2 billion to buy the assets of struggling cryptocurrency lender Celsius, which is about to file for bankruptcy. Even if Celsius doesn’t go bankrupt, Goldman Sachs investors will be able to buy its assets at huge discounts. In the meantime, Alvarez & Marsal, a consulting firm, has helped Celsius add more restructuring lawyers to its team.

Goldman Sachs could make an offer to buy the assets of Celsius for less money.

Sources who know about the situation say that traditional financial institutions, Web3 crypto funds, and funds that invest in troubled properties are all showing interest and making promises to Goldman Sachs. On June 25, everyone heard about this from Fortune.

Goldman Sachs has also been trying to get more known in the cryptocurrency market. For instance, Goldman Sachs is talking about how to combine leveraged derivatives trading with the FTX crypto market. At the moment, FTX is promising to save companies like BlockFi and Voyager Digital that are about to go out of business because they use cryptocurrencies.

The Wall Street Journal reported on June 25 that the cryptocurrency lender Celsius has hired the consulting firm Alvarez & Marsal to prepare for a possible bankruptcy case. In fact, Celsius hired Citigroup and Akin Gump Strauss Hauer & Feld last week, and both of those companies have suggested that Celsius file for bankruptcy.

After temporarily stopping user withdrawals, swaps, and account transfers, Celsius plans to keep working with government officials and law enforcement. Unfortunately, it looks like Celsius’s attempts to solve its liquidity problems aren’t working, so the company has no choice but to file for bankruptcy.

Celsius has sold all of its stETH and removed all of its ETH assets from Banker’s liquidity pool. The community’s plan to fix things is another thing that hasn’t worked. On Friday, short-sellers of the Celsius CEL token covered their bets by artificially driving up the price of the token through a coordinated campaign of bulk purchases and by removing it from a number of exchanges.

Investors are suing Celsius

Celsius has a lot of problems, and one of them is that investors are suing the company because it stopped letting them get their money out. Ben Armstrong, who made the website BitBoyCrypto.com, has already said that a group of people is going to use Celsius. So, Celsius may have no choice but to declare bankruptcy.

Conclusion

Deposits made with Celsius are not covered by the FDIC or the SIPC. The government of the United Kingdom is in charge of deposits instead of the government of the United States. Even though Celsius says it lends your bitcoin to institutional investors, there’s no way to check if this is true. When you put cryptocurrency into your Celsius account, you should know that there is a risk.

People haven’t been able to get money out of their Celsius accounts since June 2022, and it looks like the company doesn’t have enough money to pay out. People who put their money here are taking a big risk.

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