Goldman Sachs said to raise $2 billion for Celsius assets: report

The US investment bank is seeking to raise funds to buy out the troubled assets of the troubled crypto lender, according to a Fortune report, citing people familiar with the matter.

See related article: Celsius says hiring restructuring lawyers, exploring financing options

Fast facts

  • A deal would allow investors to buy Celsius Network’s assets at “potentially significant discounts” if the crypto lender files for bankruptcy, Fortune said, citing two people familiar with the matter.
  • The Wall Street Journal reported on Friday that Celsius had hired restructuring lawyers from Alvarez and Marsal, in addition to those hired from Akin Gump Strauss Hauer & Feld earlier this month.
  • According to one of the unnamed sources cited by Fortune, Goldman Sachs is measuring interest from Web 3.0 crypto funds, distressed asset funds, and traditional financial institutions.
  • Celsius has approached Citigroup to evaluate an offer to buy rival Nexo, according to a report by The Block.
  • The Fortune report says lawyers for Citigroup and Akin advised Celsius to file for bankruptcy.
  • Celsius halted all withdrawals and transfers amid a liquidity crunch on June 13 and it was widely speculated the company could be at risk of insolvency.
  • While it’s not uncommon for investment bankers to spark interest by quoting potential deals, any buyer of Celsius’ troubled assets will face litigation from clients as well as regulators.
  • “Celsius is about to be inundated with subpoenas and enforcement action,” Lee Reiners, executive director of the Global Financial Markets Center at Duke University School of Law, told Quartz.
  • “I imagine some SEC subpoenas are coming if they haven’t already come,” Reiners told Quartz. “I expect some enforcement action to be taken not only by the SEC, but also by state securities regulators.”
  • Texas, New Jersey, Alabama and Kentucky have already served Celsius with cease-and-desist letters for allegedly ‘soliciting or selling’ its ‘interest accounts’ when they were securities not registered.
  • A Celsius spokesperson did not immediately respond to a request for comment outside of regular US business hours.

See related article: CEL down more than 50% since Celsius Network withdrawal freeze

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