Reading time: ~2 m
Cryptolendin platform Celsius hired financial conglomerate Citigroup to find a possible solution to the problems that arose after the freezing of clients’ assets. This is written by The Block, citing informed sources.
On June 13, 2022, Celsius suspended withdrawals and operations on the platform “due to extreme market conditions.” According to experts, the real reason for the incident is the “liquidity crisis”, because of which the company cannot make payments to customers.
What happened to Celsius (CEL)?
Over the following days, Celsius strengthened its debt position in three main areas: MakerDAO, Aave and Compound. Apparently, the company spent a significant part of its funds for these purposes.
The interlocutors of The Block stressed that Citigroup was hired “as an adviser” – the conglomerate “advises Celsius on possible financing options”, but will not provide the company with funds from its balance sheet.
The banking giant is allegedly studying the offer of the nexo landing platform competing with Celsius. Earlier, the latter announced its readiness to buy out the company’s loan portfolio. The offer is valid until June 20.
One of the sources of the publication noted that Citigroup is not the first time working with Celsius. According to him, earlier the conglomerate advised the company on business and potential issues. IPO its subsidiary is Celsius Mining.
Recall, on May 15, The Wall Street Journal reported that Celsius hired lawyers from the firm Akin Gump Strauss Hauer & Feld for a possible financial restructuring. Journalists stressed that the initial purpose of the platform is to attract capital from investors.
#Celsius #Hired #Citigroup #Find #Financing #Options