The Wall Street firm is looking to raise $2.000 billion to buy assets from Celsius Network, taking advantage of the platform's poor situation.
Goldman Sachs, one of Wall Street's leading investment firms, is looking raise $2.000 billion, in investor commitments, to purchase the assets of the crypto lending platform, Celsius Network.
Due to Celsius's complicated situation, close to bankruptcy, Goldman Sachs would take over the company's assets at a really low price.
The plan would involve buying the company's assets, provided that it eventually declares bankruptcy. The assets would be, for the most part, the cryptocurrencies that Celsius currently owns. To do this, the investment firm is bringing together investors from the sector, such as cryptocurrency and Web3 funds, funds specializing in distressed assets, and traditional financial institutions with a large amount of cash on hand.
It is important to highlight that Goldman Sachs will not put money from its coffers to invest in Celsius Network assets, but will act as an intermediary, bringing together and organizing entities and investors interested in acquiring the assets.
Ultimately, if the Goldman Sachs conglomerate of investors were to acquire all these assets, management would fall to all investment participants.
If this purchase were to become effective, it is possible that Some clients may recover their investmentsThis would cause users to regain confidence in the platform, which would ultimately have a positive impact on the crypto market, which could begin a slight recovery.
What happened to Celsius Network?
Celsius Network had more than $8.000 billion loaned to its clients and $12.000 billion in assets under management as of May 2022. However, on June 12, it announced that stopped withdrawals from its customers, due to “extreme market conditions.”
Shortly after, the company received an offer from Nexus purchase, which was offered to take over the company's debt, in exchange for keeping the majority of the assets.
Later, news broke that Celsius Network was going to Citigroup, Álvarez & Marsal and Akin Gump Strauss Hauers & Feld as advisors, in search of the best solutions, including the evaluation of the offer made by Nexo. All the restructuring firms have Celsius Network advised to file for bankruptcy.
Since freezing withdrawals for its customers, Celsius Network has maintained absolute silence on the issue, breaking it during the week to announce to users that they were cancelling all Q&A sessions (AMA) with their followers and that Restore liquidity “will take time”.
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