Goldman Sachs is looking to buy Celsius’s crypto assets for $2 billion. – Latest News

According CoindeskGoldman Sachs is asking investors to raise $2 billion to buy assets from Celsius. The Celsius network is currently in a liquidity problem. Additionally, he may be preparing to file for bankruptcy, as he has hired restructuring advisers from consulting firm Alvarez & Marshallaccording to a report.

The liquidity problem of lenders crypto

Celsius has suspended withdrawals, exchanges and transfers early June following volatile crypto market conditions, further marginalizing the rest of the crypto market.

More recently, Three Arrows Capitala largely cryptocurrency-focused hedge fund, has committed hundreds of millions of dollars in liquidations, a move that could lead to bankruptcy.

Otherwise, Travel Digital was another company recently that ended up reducing its withdrawals from $25,000 to $10,000. This happened even after the company has secured a $500 million line of credit.

Voyager has struggled since revealing he loaned out Three Arrowswhich had suffered heavy losses when the stablecoin TerraUSD collapsed in May. The company had donated $720 million in bitcoins and stablecoins. Because of this, investors took 60% in the value of the company’s shares last week. Fortunately, the support of the CEO of FTXSat Bankman Friedmanaged to keep Voyager upright.

Bonus: Albania will tax income related to cryptocurrencies from 2023.

Goldman Sachs plans to buy the assets of Celsius

Goldman Sachs is looking for investors to create a fund Web3 to buy assets from Celsius. The multinational investment bank raises $2 billion from various funds to take advantage of potential discounts on the Celsius crypto asset.

If Celsius declares bankruptcy, it may be forced to quickly sell assets to pay off its creditors. Citigroup and Akin Group reportedly advised the stock exchange to file for bankruptcy.

The struggling exchange is said to have over $11 billion in assets as of May 2022. That means if Goldman Sachs could buy all of Celsius’s assets. However, it’s unclear if the company is looking to take over Celsius as a going concern or strip and sell its assets. Upon filing for bankruptcy, a schedule would be created to determine the order in which creditors are paid off. Investors are hoping they will get paid first, but there are no guarantees.

On the other hand, Celsius has also received an offer to sell its assets to Nexo. Recent reports suggest that Citibank also wants to get involved.

See also: Indian authorities issue circular clarifying TDS for cryptocurrencies.

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Goldman Sachs is looking to buy Celsius’s crypto assets for $2 billion. – Latest News

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