According to persons familiar with the situation, Celsius Network LLC has hired restructuring experts from the consultancy firm Alvarez & Marsal to provide advice on a potential bankruptcy petition.
The New Jersey-based cryptocurrency lending company froze withdrawals and transfers earlier this month due to“extreme” market conditions, in the latest sign of the financial market downturn hitting the crypto sphere.
A separate report from CoinDesk said that Wall Street bank Goldman Sachs was looking to raise $2 billion from investors to buy distressed assets from Celsius.
The proposed deal would allow investors to buy the assets at potentially big discounts if the cryptocurrency lender files for bankruptcy, according to the report, which cited two people familiar with the matter.
Celsius had $11.8 billion in assets as of last month.
The market for digital assets has experienced tremendous volatility in recent months as investors flee risky investments out of concern that draconian interest rate increases to combat stubborn inflation may cause the country to enter a recession.
