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Celsius is said to have sought advice from Citigroup following the withdrawal freeze

16 Jun 2022 : 01:08
2 min read
  • After suspending user withdrawals, Celsius has approached financial giant Citigroup to advise on alternative solutions
  • It is rumored that the investment bank also advises Celsius on proposals from competitors such as Nexo, which seek to acquire the firm
  • Celsius after concerns over insolvency, halted withdrawals and transfers between accounts earlier this week

After suspending user withdrawals, Celsius has approached financial giant Citigroup to advise on alternative solutions, according to The Block.

Celsius appoints Citigroup to advise on possible solutions

According to sources familiar with the situation, Celsius has appointed Citigroup as an “advisor,” but the banking giant will not provide Celsius money from their balance sheet; instead, Citigroup will advise Celsius on future financing possibilities.

The investment bank also advises Celsius on proposals from competitors such as Nexo. Nexo contacted Celsius earlier this week to buy its “remaining qualified assets of Celsius, namely their collateralized loan portfolio.”

The firm also hired restructuring attorneys

Celsius lends out customer deposits to other users to earn a return. The company managed $11.8 billion in assets as of May 17, but recently due to concerns over insolvency, it halted withdrawals and transfers between accounts “to stabilize liquidity.  According to The Wallstreet Journal, the firm already recruited restructuring counsel from the law firm Akin Gump Strauss Hauer & Feld LLP to seek assistance on its present financial issues.

According to the source, Citigroup and Celsius are not strangers. The bank also counseled Celsius on its mining subsidiary’s business and IPO prospects, although these are now unavailable. Celsius is seeking new financing solutions from investors first and foremost.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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