Goldman eyeing $2B fundraise for Celsius Network's distressed assets – CoinDesk

The Goldman Sachs Group Inc. is looking to raise $2 billion from investors to acquire the assets of U.K.-based cryptocurrency lending platform Celsius Network Ltd. at potentially big discounts if Celsius files for bankruptcy, CoinDesk reported June 24, citing unnamed sources.

State securities regulators are reportedly investigating Celsius Network's suspension of customer redemptions, citing concerns that investors' inability to access their assets when they need to "may result in significant financial consequences." The company disclosed on its website that it paused all withdrawals, swaps and transfers between accounts "due to extreme market conditions."

Goldman seems to be soliciting commitments from Web3 cryptocurrency funds, which focus on distressed assets and traditional financial institutions, according to the CoinDesk report. Participants in the fundraising would then manage the assets, which are likely cryptocurrencies that would be sold at discounted prices, the reported noted.

Restructuring advisory firm Alvarez & Marsal was engaged by Celsius to advise on a possible bankruptcy filing, according to a separate report by The Wall Street Journal, citing people familiar with the matter. The Journal also earlier reported that Celsius tapped restructuring attorneys from Akin Gump Strauss Hauer & Feld LLP.

Additionally, the company has also sought the help of Citigroup Inc. to advise on possible solutions, according to a previous report by The Block.

Both Citi and Akin Gump Strauss Hauer & Feld recommended that Celsius file for bankruptcy, CoinDesk reported, citing people familiar with the matter.

Goldman did not respond to a request for comment, CoinDesk added.