North Carolina Digital News

Goldman Sachs said looking to raise $2B to buy Celsius Network assets – report (NYSE:GS)


Fraud Charge Against Goldman Sachs Takes Toll On Market Indices

Chris Hondros/Getty Images News

Goldman Sachs (NYSE:GS) is said to be looking to raise $2 billion from investors to purchase distressed assets from crypto lender Celsius Network.

The potential purchase would allow Goldman to buy Celsius assets at a huge discount in the event of a bankruptcy filing, according to a Coindesk report. The bank is evaluating interest from Web3 crypto funds, funds focused on distressed assets and traditional financial institutions.

The Coindesk item comes after the WSJ reported on Friday cryptocurrency lender Celsius Network has employed restructuring consultants from consulting firm Alvarez & Marsal in preparation for a possible bankruptcy filing.

Celsius, which promises exceptionally high annual interest rates on crypto deposits to then create crypto loans, reached out to law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible restructuring plans, the WSJ reported on June 14.

In the wake of turbulent crypto market conditions, Celsius had suspended withdrawals, swaps, and transfers earlier in June, putting the rest of the crypto market further on edge. More recently, prominent crypto-focused hedge fund Three Arrows Capital has incurred hundreds of millions of dollars in liquidations in a move that could lead to insolvency.

Celsius reportedly had $11.8B in assets as of May, down from nearly $25B in October amid the worst drawdown in cryptos since the bear market in 2018, the WSJ has noted.

Previously, (June 16) crypto lending platform Celsius probably won’t get help from investors.

Source link

Leave A Reply

Your email address will not be published.