Crypto lending giant Celsius has hired corporate advisers from Alvarez & Marsal to prepare for a possible bankruptcy, the Wall Street Journal reported on Tuesday.
The New Jersey-based Israeli-American lending company froze withdrawals earlier this month due to "extreme market conditions," amid a crisis in the carpito market.
Meanwhile, crypto news site CoinDesk reports that investment bank Goldman Sachs plans to raise $ 2 billion from investors to buy assets from the Celsius chain.
This deal will allow investors to buy properties at big discounts, if the lending giant does file for bankruptcy.
It should be noted that as of last month, Celsius held assets worth approximately $ 11.8 billion.
Since the announcement of the withdrawal of withdrawals, all 1.7 million Celsius users have not been able to withdraw their investments.
The company's CEO, the Israeli Alex Mashinsky, tried to reassure, and the company's announcement said after the freeze that it was intended to "protect customers", but a week and a half ago he wrote on his Twitter account: "This is a difficult background.
Your attention and support is everything to us. "
Prior to reports of recruiting bankruptcy counsel, the Wall Street Journal reported last week that Celsius had approached a law firm to reorganize its financial position.
Celsius is a platform that allows its customers to deposit various cryptocurrencies, such as Bitcoin and Etherium.
It was founded in 2017 by Israelis Alex Mashinsky and Daniel Leon.
It is based in the United States, and also has offices in Israel.
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