Goldman Sachs wants $2 billion to buy Celsius Assets

Celsius Network, a crypto-lending startup, looks to be on its way out, and Wall Street behemoth Goldman Sachs is apparently planning to buy it out.

Despite Celsius’ financial difficulties, Goldman Sachs is reportedly preparing to raise $2 billion from investors in order to buy Celsius’ assets.

In the event Celsius files for bankruptcy, the transaction would allow investors to acquire Celsius’ assets at substantial discounts. As of early this month, Celsius had more than $11 billion in assets under management and had also lent a total of $8 billion to its customers.

Celsius had major liquidity concerns when the cryptocurrency market collapsed. A report says Goldman Sachs is looking for support from Web3 cryptocurrency funds and traditional financial institutions that have a lot of money. Bank of America is also in contact with distressed asset funds.

The majority of Celsius’ assets are cryptocurrencies, which will be sold at low prices and then managed by the investors that participate in Celsius.

According to Arthur Hayes, the former CEO of BitMEX and co-founder of the exchange, Goldman Sachs isn’t investing any of its own money into the planned deal.

Please don’t trust Goldman Sachs until they expressly state that they are risking their own money. GS is doing what advisory banks do, bringing together a group of investors, and helping them arrange the acquisition of troubled assets for a hefty fee, he tweeted on Saturday.

After successfully purchasing Celsius’ assets and restoring withdrawals, he believes the community should celebrate. There is little doubt that a full-blown crypto bull run would be sparked if creditors were able to recoup some of their losses.

Before depositors are able to get their money back from bankrupt CENTRALISED crypto lenders, users should see any ‘bailouts’ as public relations gimmicks.

It’s safe to assume that Celsius is on the verge of going out of business. An Akin Gump Strauss Hauer & Feld restructuring counsel has been recruited by the crypto lender, as previously reported. To assist it prepare for bankruptcy, advising company Alvarez & Marsal has hired additional experts from Celsius, the Wall Street Journal reported on Friday.

Since halting withdrawals, Celsius has been quiet. “Our focus remains to be stabilizing our liquidity and operations,” the company said in a notice on June 19. It’s going to take some time.”

The corporation has previously said that it will no longer organize Q&A sessions with members of the community.

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