Celsius Network Hires Bankruptcy Advisers

The Wall Street Journal reported on Friday (Saturday, June 25, 2022, in Manila) that Celsius Network LLC has recruited restructuring specialists from advising firm Alvarez & Marsal to advise on a prospective bankruptcy case.

Photo Insert: The New Jersey-based bitcoin lending service banned withdrawals and transfers earlier this month owing to "extreme" market conditions.

The New Jersey-based bitcoin lending service banned withdrawals and transfers earlier this month owing to "extreme" market conditions, the latest indicator of the cryptosphere's financial market slump.

Separately, CoinDesk reported on Friday that Wall Street firm Goldman Sachs was attempting to raise $2 billion from investors in order to purchase troubled assets from Celsius.

According to the story, which cited two people familiar with the subject, the proposed arrangement would allow investors to purchase the assets at potentially significant discounts if the bitcoin lender declared bankruptcy.

As of last month, Celsius has $11.8 billion in assets. Reuters queries for comment were not immediately responded to by the corporation or Alvarez & Marsal.

The market for digital assets has been roiled by severe volatility in recent months, as investors flee riskier assets on fears that aggressive interest rate hikes to manage stubborn inflation may send the country into recession.

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