Celsius engaged Citigroup to find sources of financing

The investment bank’s experts are helping the platform resolve the problem of its customers’ funds being frozen

16.06.2022 - 08:55

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2 min

What’s new? Crypto lending platform Celsius has hired experts from the financial conglomerate Citigroup to advise on possible solutions to the company’s problems in connection with the freezing of its customers’ funds. In particular, in question is finding new sources of financing for Celsius. This is reported by The Block, citing its own sources.

News on The Block’s website

What else is known about the Celsius situation? The Block’s interlocutors reported that the investment bank Citigroup is advising the Celsius team on potential financing options, including an offer from a rival company Nexo. On June 13, Nexo said that the company, its partners, and affiliates are ready to buy from Celsius part or all of the eligible outstanding collateralized loan receivables, subject to Nexo’s risk management requirements.

Citigroup representatives declined to comment on this information to The Block. Celsius has not yet responded to a request by reporters.

Citigroup is an international financial conglomerate listed as a systemically important bank. In November 2021, it announced the launch of a unit for working with cryptocurrencies within its institutional client services group. In 2022 is ranked 27th in Forbes Global 2000, a ranking of the world’s largest public companies. Citigroup has $2,39 trillion in assets under management.

On June 13, Celsius suspended withdrawals, exchanges, and transfers between accounts. According to a statement on the company’s blog, the decision was taken “due to extreme market conditions.” On June 14, it became known that the platform hired lawyers to restructure the company following the freezing of its customers’ accounts. Law firm Akin Gump Strauss Hauer & Feld LLP became Celsius’s partner.

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