If the crypto lender fails, the Wall Street firm is looking for $2 billion in commitments from investors to purchase distressed assets at significant discounts.
According to two persons who know the situation, Goldman Sachs is attempting to acquire $2 billion from investors to purchase risky assets from struggling crypto lender Celsius.
According to the sources, if Celsius filed for bankruptcy, the proposed transaction would enable investors to purchase its assets at possible significant discounts.
According to a person familiar with the matter, Goldman Sachs appears to be assessing interest and requesting pledges from Web3 crypto funds, funds specializing in distressed assets, and conventional financial institutions with plenty of cash. The participants in the fundraising effort would then probably handle the assets, which would probably be the cheaply to be sold cryptocurrency.
According to a Friday afternoon Wall Street Journal story, Alvarez & Marsal, a restructuring advising firm, has been hired by Celsius.
A request for comment from Goldman Sachs was not answered.
In a surprise announcement on June 12, Celsius, which as of May this year had more than $8 billion lent to clients and $12 billion in assets under management, said it would no longer allow withdrawals from its platform due to “extreme market conditions.” The announcement made these circumstances worse, which momentarily caused bitcoin to trade below $20,000.
The Wall Street Journal reported earlier this month that Celsius has also hired restructuring lawyers from the law firm Akin Gump Strauss Hauer & Feld in addition to Alvarez & Marsal. According to The Block, Celsius has also engaged the assistance of global investment firm Citigroup to offer advice on potential solutions, including reviewing a proposal from competing cryptocurrency lender Nexo.
According to persons who know the situation, Celsius has received bankruptcy filing recommendations from Citigroup (C) and Akin Gump. Citigroup opted not to respond. Akin Gump did not immediately answer an inquiry for comments.
Last year, Celsius raised $750 million from investors, including Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund, valuing the company at $3.25 billion.