Goldman Sachs to raise $2 billion to acquire Celsius assets

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What

Investment bank Goldman Sachs has struck up a deal to buy up Celsius’ crypto assets in the event of bankruptcy

Why

In April, Goldman Sachs issued its first Bitcoin-backed loan and began offering Bitcoin products to some of its customers. Acquiring Celsius’ assets could help it cement its position in the crypto space

What next

If the deal goes ahead, Goldman Sachs could pick up some of the $3 billion of crypto assets under management by Celsius relatively cheaply if the $2 billion bankruptcy deal goes through

The story

Celsius is facing insolvency due to falling crypto prices and blocked users from withdrawing from its exchange earlier this month due to “extreme market conditions”.

Since then, the outlook for Celsius has not improved, with both Citibank and Akin Gump advising it to declare bankruptcy.

This is in stark contrast to where it was just over a year ago when it raised $400 million from investors and the platform boasted over 1 million users.

Today, the price of its native token CEL is down 19% in the past 24 hours.

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