Celsius Reportedly Taking Advice from Citigroup, CEO Mashinsky Calls for ‘Patience’ and 'Support'
The ailing crypto lender Celsius Network (CEL) has reportedly hired the financial giant Citigroup to advise it on its options after Celsius suspended withdrawals, swaps, and between-account transfers earlier this week. Meanwhile, Celsius’ under-fire CEO Alex Mashinsky has returned to Twitter.
Per the media outlet The Block, two unnamed “people familiar with the matter” claimed that Citigroup is now “helping Celsius assess its options.”
The sources allegedly claimed that Celsius had sought Citigroup’s help in “an advisor[y] capacity” on matters including “potential financing.”
Cryptonews.com has contacted Celsius and Citigroup with requests for comment.
One of the sources reportedly told the media outlet that “Citigroup and Celsius are not new to each other,” and that Citigroup had advised Celsius on matters pertaining to its mining subsidiary. The two have reportedly spoken about Celsius’ plans to go public via an initial public offering (IPO).
The two parties will also reportedly discuss financing offers such as the one on the table from Nexo (NEXO), a rival crypto lender. Nexo has bid for the right to take control of Celsius’ “remaining qualifying assets” – including the latter’s “collateralized loan portfolio."
However, the sources urged caution. One was quoted as stating:
“It’s not like Citi is going to give Celsius money out of their balance sheet.”
The news comes hot on the heels of a Wall Street Journal report yesterday that also quoted “people familiar with the matter” as stating that Celsius had “hired restructuring attorneys” from the law firm Akin Gump Strauss Hauer & Feld.
The legal firm, which specializes in bankruptcy-related cases, has allegedly been hired to “advise on possible solutions” for Celsius’ “mounting
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