Just In: Here’s How Celsius Bankruptcy Filing Will Benefit Goldman Sachs
Investment bank Goldman Sachs is raising $2 billion to buy troubled crypto lender Celsius’ assets as it prepares for potential bankruptcy, according to Fortune. Goldman Sachs’ investors will be able to acquire Celsius’ assets at big discounts, even if Celsius does not declare bankruptcy. Meanwhile, Celsius has hired additional restructuring lawyers from the advisory firm Alvarez & Marsal.
Goldman Sachs Interested in Buying Celsius’ Assets At Discount
According to people familiar with the matter, Goldman Sachs sees interest and commitments from Web3 crypto funds, funds specializing investing in distressed assets, and traditional financial institutions, reported Fortune on June 25.
Moreover, Goldman Sachs has been expanding its footprint in the crypto market. For instance, Goldman Sachs is in talks with FTX crypto exchange to integrate leveraged derivatives trading. Currently, FTX is committing to bailout several crypto firms, such as BlockFi and Voyager Digital, as they face liquidation risks.
Meanwhile, crypto lender Celsius has hired advisory firm Alvarez & Marsal for a possible bankruptcy filing, reported the Wall Street Journal on June 25. In fact, Citigroup and Akin Gump Strauss Hauer & Feld hired by Celsius last week have recommended a bankruptcy filing.
Celsius plans to continue working with regulators and officials after it paused withdrawals, swaps, and transfers between accounts. Unfortunately, Celsius’ plans to resolve the liquidity problems seem to be failing, as bankruptcy remains the only option.
Celsius has liquidated its stETH holdings and withdrawn its ETH positions in Bancor’s liquidity pool. The recovery plan from the community has also failed. On Friday, short-sellers of the Celsius’ CEL token covered their positions by forcefully raising the price through mass purchases and withdrawing them from various exchanges.
Celsius Also Facing Lawsuits from Investors
Celsius is surrounded by numerous problems, including lawsuits from its investors after the firm paused withdrawals. In fact, Ben Armstrong, founder of BitBoyCrypto.com, had warned that a class-action lawsuit is under development against Celsius. Thus, bankruptcy may remain the only option for Celsius.
- Hassett Says Government Shutdown Could End This Week as Crypto Markets Brace for Inflation Data
- ‘Floki Is The CEO’: FLOKI Surges Over 20% After Elon Musk’s Name Drop
- Breaking: Ripple-Backed Evernorth to Establish $1B XRP Treasury to ‘Accelerate’ XRP’s Adoption
- Breaking: Michael Saylor’s Strategy Acquires 168 Bitcoin as Crypto Market Rebounds
- Breaking: $10T BlackRock Launches Bitcoin ETP in London As UK FCA Eases Crypto Ban
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
