The post Crypto Lender Celsius Network Files for Bankruptcy, Owes Users $4.7 Billion appeared first on theprimarymarket.com.
]]>According to the court documents filed by Celsius Network, the company has $167 million on hand for operations during the restructuring process. It also has $4.3 billion in total assets and $5.5 billion in liabilities. The court filing also shows that the lender currently owes users $4.7 billion.
Celsius Network had a rapid rise during the pandemic, but an even faster downfall after the cracks started to show in the crypto market. For Celsius, just like for many other crypto firms, the trouble started with the collapse of stablecoin Terra Luna and the resulting loss in value of popular cryptocurrencies like Bitcoin and Ether.
Finding itself in a pinch, Celsius made a decision to stop withdrawals from the platform in June. The users were locked out of their funds, and it is unclear if and when they’ll get their money back. With the bankruptcy now in place, many experts believe the users shouldn’t get their hopes high, especially since the company noted in its T&Cs that “in the event of bankruptcy, customers might not get all – or indeed any – of their money back.”
Besides Celsius and Voyager Digital, several other crypto firms filed for bankruptcy in recent weeks. The list includes crypto fund Three Arrows Capital.
The post Crypto Lender Celsius Network Files for Bankruptcy, Owes Users $4.7 Billion appeared first on theprimarymarket.com.
]]>The post Celsius Shareholder Proposes Rescue Plans for Struggling Crypto Lender appeared first on theprimarymarket.com.
]]>The recent crypto market crash dealt a huge blow to Celsius. The declining prices of cryptocurrencies forced the lender to stop all withdrawals, locking 1.7 million users out of their assets. While the initial idea was to consolidate and wait for the crisis to pass, the company now seems at the point of no return, with bankruptcy being the most likely outcome.
In order to try and stop Celsius’ demise, BnkToTheFuture, which holds 5 percent shares in the lender and is a depositor, is proposing three rescue plans.
The first two plans “involve risks, and full recovery of funds is not guaranteed,” according to the proposal. One is “restructuring to relaunch,” and this route would “allow depositors to benefit from any recovery through financial engineering.” The other calls for “an operational plan that allows a new entity and team to rebuild and make depositors whole.”
Finally, there is also a proposal for outside intervention that would see “the most influential whales in Bitcoin” teaming up with the community to bail out Celsius.
BnkToTheFuture put the plans on the vote and will present the favorite option during an upcoming formal meeting with the Celsius board.
The post Celsius Shareholder Proposes Rescue Plans for Struggling Crypto Lender appeared first on theprimarymarket.com.
]]>The post Goldman Sachs Looking to Raise $2 Billion for Buying Celsius Network Assets appeared first on theprimarymarket.com.
]]>Goldman Sachs has been quite diverse in its attempts to round up the necessary money. It reached out to crypto funds but also companies specialized in acquisitions of distressed assets as well as some more traditional financial institutions. If the efforts pay off, Goldman will not manage the assets itself, according to Market Insider. Instead, the bank would only serve as a broker while passing on everything else to individual investors.
Celsius Network, which facilitated lending and borrowing of cryptocurrency for users, has been hit particularly hard by the recent crypto market crisis. Amid the decrease in value of major cryptocurrencies, the lender was forced to freeze withdrawals, swaps, and transfers earlier this month, and it is unclear when, if at all, this activity will be resumed.
The company reached out to multiple restructuring specialists in recent weeks and has been advised to file for bankruptcy by Citigroup and Akin Gump. Celsius is reportedly also considering a takeover offer from rival Nexo.
The post Goldman Sachs Looking to Raise $2 Billion for Buying Celsius Network Assets appeared first on theprimarymarket.com.
]]>The post Crypto Lender Celsius Network Files for Bankruptcy, Owes Users $4.7 Billion appeared first on theprimarymarket.com.
]]>According to the court documents filed by Celsius Network, the company has $167 million on hand for operations during the restructuring process. It also has $4.3 billion in total assets and $5.5 billion in liabilities. The court filing also shows that the lender currently owes users $4.7 billion.
Celsius Network had a rapid rise during the pandemic, but an even faster downfall after the cracks started to show in the crypto market. For Celsius, just like for many other crypto firms, the trouble started with the collapse of stablecoin Terra Luna and the resulting loss in value of popular cryptocurrencies like Bitcoin and Ether.
Finding itself in a pinch, Celsius made a decision to stop withdrawals from the platform in June. The users were locked out of their funds, and it is unclear if and when they’ll get their money back. With the bankruptcy now in place, many experts believe the users shouldn’t get their hopes high, especially since the company noted in its T&Cs that “in the event of bankruptcy, customers might not get all – or indeed any – of their money back.”
Besides Celsius and Voyager Digital, several other crypto firms filed for bankruptcy in recent weeks. The list includes crypto fund Three Arrows Capital.
The post Crypto Lender Celsius Network Files for Bankruptcy, Owes Users $4.7 Billion appeared first on theprimarymarket.com.
]]>The post Celsius Shareholder Proposes Rescue Plans for Struggling Crypto Lender appeared first on theprimarymarket.com.
]]>The recent crypto market crash dealt a huge blow to Celsius. The declining prices of cryptocurrencies forced the lender to stop all withdrawals, locking 1.7 million users out of their assets. While the initial idea was to consolidate and wait for the crisis to pass, the company now seems at the point of no return, with bankruptcy being the most likely outcome.
In order to try and stop Celsius’ demise, BnkToTheFuture, which holds 5 percent shares in the lender and is a depositor, is proposing three rescue plans.
The first two plans “involve risks, and full recovery of funds is not guaranteed,” according to the proposal. One is “restructuring to relaunch,” and this route would “allow depositors to benefit from any recovery through financial engineering.” The other calls for “an operational plan that allows a new entity and team to rebuild and make depositors whole.”
Finally, there is also a proposal for outside intervention that would see “the most influential whales in Bitcoin” teaming up with the community to bail out Celsius.
BnkToTheFuture put the plans on the vote and will present the favorite option during an upcoming formal meeting with the Celsius board.
The post Celsius Shareholder Proposes Rescue Plans for Struggling Crypto Lender appeared first on theprimarymarket.com.
]]>The post Goldman Sachs Looking to Raise $2 Billion for Buying Celsius Network Assets appeared first on theprimarymarket.com.
]]>Goldman Sachs has been quite diverse in its attempts to round up the necessary money. It reached out to crypto funds but also companies specialized in acquisitions of distressed assets as well as some more traditional financial institutions. If the efforts pay off, Goldman will not manage the assets itself, according to Market Insider. Instead, the bank would only serve as a broker while passing on everything else to individual investors.
Celsius Network, which facilitated lending and borrowing of cryptocurrency for users, has been hit particularly hard by the recent crypto market crisis. Amid the decrease in value of major cryptocurrencies, the lender was forced to freeze withdrawals, swaps, and transfers earlier this month, and it is unclear when, if at all, this activity will be resumed.
The company reached out to multiple restructuring specialists in recent weeks and has been advised to file for bankruptcy by Citigroup and Akin Gump. Celsius is reportedly also considering a takeover offer from rival Nexo.
The post Goldman Sachs Looking to Raise $2 Billion for Buying Celsius Network Assets appeared first on theprimarymarket.com.
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