Goldman Sachs is Raising 2 Billion Dollars to Buy Celsius’s Assets: Report

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.

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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.