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Goldman Sachs is financing $2 billion to buy the assets of embattled cryptocurrency lender Celsius

Even if Celsius does not declare bankruptcy, Goldman Sachs investors will be able to acquire its assets at substantial discounts. In the meantime, Celsius has hired more restructuring attorneys from the consulting company Alvarez & Marsal.

Fortune reported on June 25 that Goldman Sachs has received interest and promises from Web3 crypto funds, funds specializing in distressed asset investments, and traditional financial institutions, according to sources familiar with the subject.

In addition, Goldman Sachs has been extending its presence in the cryptocurrency sector. Goldman Sachs, for example, is in discussions with the FTX crypto exchange to integrate leveraged derivatives trading. FTX is currently committed to rescue a number of crypto businesses, including BlockFi and Voyager Digital, that face liquidation threats.

The Wall Street Journal reported on June 25 that crypto lender Celsius has recruited consultancy firm Alvarez & Marsal for a prospective bankruptcy filing. In reality, Citigroup and Akin Gump Strauss Hauer & Feld, two firms engaged by Celsius this week, have advised the company to file for bankruptcy.

After halting withdrawals, swaps, and inter-account transfers, Celsius intends to continue engaging with authorities and officials. Sadly, Celsius’s measures to overcome the liquidity issues appear to be failing, leaving only bankruptcy as a viable option.

Celsius has disposed of its stETH holdings and removed its ETH positions from Bancor’s liquidity pool. The community’s recovery plan has likewise failed. Short-sellers of Celsius’ CEL token covered their bets on Friday by artificially inflating the price through bulk purchases and withdrawing the tokens from several platforms. Additionally, Celsius is facing litigation from investors.

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