- Goldman Sachs is looking to put together a $2 billion deal to buy Celsius assets if it goes bankrupt, CoinDesk reported.
- The bank is approaching Web3 crypto funds and financial institutions to gauge their interest in the purchase.
- Celsius has frozen all withdrawals by depositors and has hired restructuring consultants amid a crypto crash.
Goldman Sachs is looking to put together an estimated $2 billion deal to buy assets from troubled crypto lender Celsius Network in the event that it goes bankrupt, CoinDesk reported Monday.
The suggested deal would allow investors to snap up Celsius assets on the cheap, sources familiar with the matter told the outlet.
The investment bank is approaching Web3 crypto funds, funds specializing in distressed assets, and traditional financial institutions to gauge interest in the potential purchase, according to CoinDesk.
Goldman was approached for help by an investor interested in exploring a move to pick up Celsius assets at a discount, potentially even if it doesn't collapse, Blockworks reported.
The assets, if acquired, would not be managed by Goldman Sachs, but by individuals involved in the fundraising process, the reports said. The bank would act as a broker and not invest itself.
Celsius and Goldman Sachs did not immediately respond to Insider's request for comment.
Celsius has been hit by the ongoing crypto-market crash, which has been fueled by investors fleeing high-risk assets in response to rising interest rates and historically high inflation. In a surprise move earlier this month, the lender froze all withdrawals, swaps, and transfers, citing extreme market conditions and volatility, in a bid to stabilize its liquidity.
Some interpreted this as a red flag that Celsius was facing risks of insolvency. That spread nervousness and fear among its customers, who said they had no idea what would happen to their deposits.
Celsius' recent hiring of restructuring lawyers to help advise on its mounting pile of financial issues has only added to the concerns about a potential bankruptcy. It has also enlisted experts from a restructuring advisory firm, The Wall Street Journal reported.
According to Celsius' website, the company has $11.8 billion in assets as of May 2022 and has 1.7 million users on its platform.