Cryptolandin platform Celsius hired financial conglomerate Citigroup to find a possible solution to the problems,arising after the freezing of client assets. The Block writes about this with reference to informed sources.
On June 13, 2022, Celsius suspended withdrawalsfunds and transactions on the platform “due to extreme market conditions.” According to experts, the real reason for what happened is a “liquidity crisis”, due to which the company cannot make payments to clients.
What happened to Celsius (CEL)?
Over the following days, Celsius strengtheneddebt positions in three main areas: MakerDAO, Aave and Compound. Apparently, the company spent a significant part of its funds for these purposes.
The Block's interlocutors emphasized that Citigrouphired "as an advisor" - the conglomerate is "advising Celsius on possible financing options" but will not provide the company with funds from its balance sheet.
The banking giant is allegedly studying the proposallanding platform Nexo, which competes with Celsius. Previously, the latter announced its readiness to buy out the company's loan portfolio. The offer is valid until June 20.
One of the sources of the publication noted that Citigroupnot the first time working with Celsius. According to him, the conglomerate previously advised the company on business and a potential IPO of its "daughter" - Celsius Mining.
Recall, May 15 The Wall Street Journalreported that Celsius has hired lawyers from the firm Akin Gump Strauss Hauer & Feld for possible financial restructuring. Journalists emphasized that the initial goal of the platform is to attract capital from investors.
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