Media: Celsius hires Citigroup to explore financing options

The crypto-lending platform Celsius hired the financial conglomerate Citigroup to search for a possible solution to problems arising after the freezing of clients’ assets. The Block reports, citing sources familiar with the matter.

On June 13, 2022, Celsius suspended withdrawals and operations on the platform ‘due to extreme market conditions’. According to experts, the real cause of the event was a liquidity crisis, which prevented the company from making payments to clients.

In the ensuing days, Celsius increased its debt positions in three main directions: MakerDAO, Aave and Compound. Apparently, the company spent a significant portion of its funds on these purposes.

The Block’s sources stressed that Citigroup was hired ‘as an adviser’ — the conglomerate ‘advises Celsius on possible financing options’, but will not provide funds from its balance sheet.

The banking giant is allegedly studying an offer from Nexo, a lending platform competing with Celsius. Earlier the latter stated its willingness to acquire the company’s loan portfolio. The offer runs until June 20.

One of the publication’s sources noted that Citigroup had worked with Celsius before. According to him, the conglomerate previously advised the company on business matters and potential IPO of its subsidiary — Celsius Mining.

The Wall Street Journal reported on May 15 that Celsius hired lawyers from Akin Gump Strauss Hauer & Feld for possible financial restructuring. Journalists noted that the platform’s initial goal was to attract capital from investors.

Follow ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.