refused a deal with Celsius because of the state of her finances

19.07.2022 Off By apos2t

Two sources reported that the crypto exchange was interested in concluding a deal with Celsius, but refused it due to the financial situation of the company. According to one of the sources, a hole of two billion dollars has formed in the balance of Celsius.

Crypto Exchange Operator considered making a deal with the troubled crypto lender Celsius, but eventually turned it down, two people with knowledge of the matter said.

According to sources, began negotiations with Celsius to provide financial support or make an acquisition, but refused to take further action after studying the finances of Celsius. According to one of the sources, Celsius had a $2 billion hole in its balance sheet, and found the company difficult to deal with.

Celsius has been fighting for survival since it froze all withdrawals on June 11, citing extreme market conditions. Since then, customers have not been able to withdraw funds. In May, Celsius announced 1.8 million customers and assets under management worth about $11 billion.

Despite his financial problems, Celsius remained silent almost all the time. The last official update was released on June 28, when the company stated that its goal is still to stabilize our liquidity and operations. This process will take time.

Recently it became known that the Wall Street giant Citigroup advises Celsius on financial opportunities, and the Wall Street Journal reported that the lender is working with restructuring consultants from the consulting firm Alvarez & Marsal.

Celsius is resisting filing for Chapter 11 bankruptcy, which was recommended by its lawyers, as people familiar with the situation reported earlier this week. Instead, the firm sought demonstrations of support from users to help win an internal dispute against its own legal advisers.

Celsius was founded in 2017 by CEO Alex Mashinsky and grew rapidly, promising users attractive interest rates. The firm has attracted the attention of major investors, including the Canadian pension fund Caisse de dépôt et Placement du Québec and the investment company WestCap. Last year, the company raised $760 million at a valuation of $3.4 billion.