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Goldman Sachs Reportedly Planning to Buy Celsius Network’s Crypto Assets in the Event of a Bankruptcy Filing 

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The popular investment banking company is reportedly preparing to take advantage of the Celsius Network situation and acquire the lending platform’s assets for a discount. 

According to people familiar with the matter, Goldman Sachs is planning to raise $2 billion from investors, as it makes adequate preparations to purchase Celsius Network’s assets at discounted prices should the company file for bankruptcy.

Sources told the Wall Street Journal (WSJ) that Goldman Sachs has already approached top web3 crypto funds and other funds that are specialists in acquiring distressed assets, as well as traditional financial institutions, for the deal.

In the event that Celsius Network files for bankruptcy, Goldman Sachs expects the company to sell cryptocurrencies under its custody at a relatively cheap rate.

Celsius Expected to File for Bankruptcy

Per the WSJ report, there is a tendency that Celsius Network will file for bankruptcy in the coming weeks as the company has already made significant moves toward that effect.

Celsius Network has tapped the services of restructuring consultants from Alvarez & Marsal, who are expected to give their professional advice on a possible bankruptcy filing.

WSJ also reports that Celsius Network has also hired the services of restructuring legal experts from law firm Akin Gump Strauss Hauer & Feld.  Earlier this month, the WSJ reported that Celsius also sought possible solutions to its troubles from Goldman Sachs Citigroup, which recommended that the company file for bankruptcy.

Celsius Network Woes 

Celsius Network, the popular crypto lending platform, has been undergoing a major crisis since the beginning of the month, thus prompting the company to freeze withdrawals, swaps, and transfers citing high market volatility.

As of October 2021, Celsius had over $25 billion in assets under management (AUM). However, the value of Celsius’ AUM fell significantly to $11 billion in May, following the crash of cryptocurrency prices.

Crypto Investors Are Positive About the Development

Meanwhile, news of Goldman Sachs planning to acquire Celsius Network’s assets despite the negative reports surrounding the unfortunate circumstances the crypto lending platform found itself is perceived as a positive development in the cryptocurrency space.

“Seriously, nothing signals crypto is here to stay other than Goldman getting in by buying one of the shadiest crypto lending platforms in the industry,” a Twitter user commented.

The tweet prompted a reaction from attorney John Deaton, a lawyer granted Amici status in the ongoing lawsuit between Ripple and the Securities and Exchange Commission (SEC).

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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