Goldman Sachs is looking to buy Celsius distressed assets from the troubled crypto lender according to people familiar with the matter so let’s read more today in our latest cryptocurrency news.
The Wall Street company is seeking $2 billion in commitments from investors to purchase assets at discounts if Celsius goes bankrupt. Goldman Sachs is looking to buy distressed assets from Celsius and the proposed deal will allow investors to purchase these assets at big discounts in the event of bankruptcy. Goldman Sachs seems to be getting interested in soliciting commitments from web3 crypto funds and specialises in distressed assets as well as traditional financial institutions with some cash on hand. The assets like cryptocurrencies having to be sold cheap will then be managed by participants in the fundraising push.
Celsius tapped restructuring advisory company, Alvarez and Marshal. Celsius had more than $8 billion lent out to clients as well as $12 billion in assets under management this year that it will stop withdrawals from the platform due to extreme market conditions. The disclosures exacerbated these conditions and send the BTC price below $20,000.
In addition to hiring Alvarez and Marshal, Celsius looked for other restructuring attorneys from Akin Gump Strauss Hauer and Feld. The global investment bank CitiGroup was enlisted by Celsius to advise on possible solutions like the assessment of the offer from Nexo. Citigroup and Akin Gump both recommended for Celsius file for bankruptcy. Celsius raised $750 million from investors in 2021 including Canada’s Caisse de depot et placement du Quebec whcih valued the business at $3.25 billion.
As recently reported, The investment bank Goldman Sachs said that the crypto crash won’t hurt the US economy likely. The New York City-based multinational said that the recent decline in the crypto prices is quite small compared to the US Household’s net worth. The crypto market tumbled immensely this year. BTC as the biggest digital asset by market cap is trading at $29,000 marking a 57.83% lower than the November 2021 ATH of $68,789. the market’s downtrend accelerated the past two weeks because of the collapse of Terra’s LUNA and its UST token. The researchers at the investment bank also said that billions of dollars of investors’ money has been wiped out but the US households holt a lot of cryptos so there’s no cause for concern.
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