Celsius has hired Citigroup in an “advisory capacity.” Celsius (CEL) was one of the most affected cryptocurrencies in the May market crash. It continues to plummet in June following a large sell-off by whales.
To prevent outflows, (to the astonishment of the entire crypto community) Celsius users have had their funds frozen indefinitely. Now, the crypto bank is asking the traditional macro bank Citigroup for help in finding solutions.
Citigroup is expected to advise Celsius on possible solutions after the troubled cryptocurrency lender has stopped customer withdrawals.
According to the data, Celsius has hired Citigroup in “an advisory capacity,” but they specified that “it is not that Citigroup is going to give Celsius money from its balance sheet.”
Celsius did, however, receive a rescue offer from its direct competitor, Nexo. The conditions will also be analyzed by Citigroup. Citigroup will also be charged with looking for new “possible financing options.”
Both companies have worked together in the past. The U.S. bank advised Celsius during plans to launch an IPO of its Bitcoin mining subsidiary.
It is clear that Celsius is at a crucial moment, its future depends on what actions the project takes. The crypt lending platform has also hired lawyers Akin Gump Strauss Hauer & Feld LLP, experts in insolvency and bankruptcy cases. This implies that its future could depend on a deep restructuring of the company.
Citigroup sees a future in the crypto industry
Citigroup is an American multinational investment bank and financial services corporation based in New York City, founded in 1998. The American bank seems to have known how to evolve and adapt to the new times. They have had a tactic of adoption and adaptation of the crypto environment instead of repulsion, like other traditional banks.
Requests by customers have pushed traditional banks to embark on the new cryptocurrency ecosystem that partly threatens their very existence. Citigroup launched a crypto unit specialized in blockchain in 2021. While the crypto market has fallen, Citigroup has announced that it intends to hire 4000 people for its department specializing in technology (and, presumably, cryptocurrencies.) This attitude contrasts with other companies that are making extensive layoffs to reduce their staff in the face of a possible crypto winter.