Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,175 trillion. Bitcoin has increased by over 6% this week. Ethereum gained almost 17% over the past seven days. XRP is up by nearly 3% this past week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector increased the total value protocols (TVL) to around $44 billion. Crypto…
Banking giant Goldman Sachs is reportedly raising $2 billion to buy the assets of Celsius – the troubled crypto lending platform.
The news comes from two sources familiar with the matter, according to a report from CoinDesk.
- The bank is ready to buy the lending firm’s assets at a steep discount in the event of a bankruptcy. And, it will do so using commitments from investors.
- The move is part of Goldman’s effort to draw commitments and gauge interest from web 3 funds, according to a familiarized person. They are seeking out funds “specializing in distressed assets”, and Tradfi companies with “ample cash on hand.”
- Goldman did not respond to CoinDesk’s request for comment when asked.
- Celsius indefinitely froze withdrawals on all customers’ assets on June 12th as it desperately sourced liquidity to finance its margin loans.
- On Friday, the Wall Street Journal reported that Celsius had tapped consultants at Alvarez and Marsal in preparation for bankruptcy.
- Celsius has also enlisted Citigroup for advice on restructuring solutions, which includes assessing a buyout offer from Nexo – a rival lending platform.
- Other lending platforms including Babel Finance and Finblox have also had to freeze or restrict customer withdrawals this month.
- Like Celsius, venture capital firm 3AC is also eyeing bailout and asset sale solutions. The firm was liquidated on multiple margin positions during this month’s crypto collapse – including one with BlockFi.
- BlockFi, too, required a bailout of sorts, recently receiving a $250 million revolving credit facility with FTX. The exchange’s founder Sam Bankman Fried had priorly stated that it was the responsibility of large exchanges to help stem market contagion.
By contrast, Binance CEO Changpeng Zhao doesn’t believe every firm deserves a bailout. The billionaire reportedly denied offering 3AC any credit line following its failure.