Citigroup will advise Celsius on its financing options

The crypto lender Celsius network (CEL) would have hired the financial giant Citigroup to advise him on his options after Celsius suspended withdrawals, swaps and transfers between accounts earlier in the week. In addition, Celsius’ CEO, Alex Mashinskywho has been the subject of harsh criticism, took to Twitter.

Alex Mashinsky. Source: video recording, Youtube / Mr Money TV

According to the media The Block, two “sources familiar with the matter” claimed that Celsius had asked Citigroup for help on issues such as “potential financing”.

Cryptonews.com contacted Celsius and Citigroup for comments.

One of the sources reportedly told the business that Citigroup and Celsius had collaborated before: Citigroup had then advised Celsius on issues related to its mining subsidiary. The two parties allegedly discussed Celsius’ plan to be listed through an IPO.

The two parties would also discuss funding options such as Nexo (NEXO), a competing cryptocurrency lender. Nexo has submitted a bid for the right to take control of Celsius’ “remaining qualifying assets” – including the latter’s “secured loan portfolio.”

The sources, however, called for caution. One of them allegedly said:

“It’s not like Citi wants to give Celsius money off its balance sheet.”

The news follows a report in the Wall Street Journal yesterday, which also quoted ‘people familiar with the case’, saying that Celsius had ‘hired lawyers specializing in restructuring’ of the law firm. Akin Gump Strauss Hauer & Feld.

The law firm, which specializes in bankruptcy cases, was reportedly hired to “advise on possible solutions” to Celsius’ “growing financial problems”.

Meanwhile, Alex Mashinsky took to Twitter for the first time since June 12 to urge “patience.”

On June 12, a day before Celsius announced the suspension of payments, Mashinsky denied allegations that Celsius’ “accounts” had been “locked.” accusatory a Twitter user who wrote about spreading “RD&D [peur, incertitude, doute] and misinformation. “

However, since June 13, Mashinsky has disappeared from Twitter before resurfacing on the evening of June 15 to say that his team is now working tirelessly to solve the company’s problems. He has Explain :

“We are focused on your concerns and are grateful to have heard so many testimonies. Seeing you meet is a clear sign that our community is the strongest in the world. It is a difficult time; your patience and your support are crucial for us .”

There were many answers, and some claimed that their “savings” were in the hands of Celsius. One Twitter user claimed it took them “four years and 100 hours of work each week to save” the money they had locked in Celsius. He added that worry prevented them from falling asleep.

One of the biggest critics of the crypto sector and defender of gold Peter Schiff also did a lot to make its voice heard – as is often the case when volatility affects markets.

Schiff and Mashinsky have faced each other many times before, and the former took the opportunity to throw a stab at Celsius’ CEO, writing :

“When you and I discussed […], I pointed out that you have to take a lot of risk with your deposits to pay such high interest rates. You denied that was the case and assured me and all your listening customers that you did not take any chances! “

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