The largest cryptocurrency lender is preparing for possible bankruptcy

The company Celsius Network, working in the field of financial lending, plans to apply for insolvency. Experts of the cryptocurrency market came to such conclusions after learning about the consultants of their law firm Alvarez & Marsal hired by her recently.

The information was leaked to the media after the firm temporarily stopped the withdrawal and exchange of foreign currency assets on June 13, also banning transfers between different accounts. In the company itself, the measures introduced were explained by the extreme conditions in which the crypto market found itself. 

Until recently, Celsius allowed customers to freely purchase cryptocurrency by opening deposits and receiving interest on them.

Loans were popular among clients, which were taken on the security of existing assets in the crypt. In mid-May, the company reported that it has about 1.7 million consumers, and has assets worth $11.8 billion. The total amount of loans issued was $8.2 billion. 

According to the WSJ, the New Jersey firm took unpopular measures for a reason. This happened against the background of a sharp drop in bitcoin exchange rates. And although the firm promised that customers would continue to receive interest on deposits during the suspension period, the value of Celsius tokens decreased by 50%.

There are conflicting opinions in the American media about the possible development of events related to the activities of Celsius. According to one version, dating back to the Internet resource CoinDesk, the investment bank Goldman Sachs may be interested in acquiring the company. 

The credit institution would like to acquire the company's distressed assets, attracting $2 billion of investors' money for this purpose. But to get serious discounts, the bank needs Celsius to declare itself insolvent.

Another interested party in the case may be the structures of the investment bank Citigroup, to which the firm also applied for advice. The company hired specialists from Akin Gump Strauss Hauer & Feld LLP, advising firms in connection with a possible restructuring. Comments from banks and law firms on this issue have not yet been received.