Crypto land platform Celsius has hired financial conglomerate Citigroup to come up with a possible solution to the problems that arose after clients’ assets were frozen. The Block writes about this by citing knowledgeable sources.

On June 13, 2022, Celsius suspended withdrawals and operations on the platform “due to extreme market conditions”. According to experts, the real reason for what is happening is a “liquidity crisis” due to the company’s inability to pay customers.

In the following days, Celsius strengthened its debt positions in three main areas: MakerDAO, Aave and Compound. It seems that the company spent a significant part of its funds for these purposes.

The Block’s interlocutors stressed that Citigroup has been hired “as a consultant” – the holding has “advised Celsius on possible financing options”, but will not fund the company from its balance sheet.

The banking giant is allegedly seeking a bid from rival Celsius landing platform Nexo. Earlier, the latter had announced that it was ready to purchase the company’s loan portfolio. The campaign is valid until 20 June.

One of the publication’s sources stated that this is not the first time Citigroup has worked with Celsius. According to him, the holding previously advised the company on business and potential. public offering “daughters” – Celsius Mining.

Recall, May 15, The Wall Street Journal reported that Celsius has hired lawyers from Akin Gump Strauss Hauer & Feld for a possible financial restructuring. The journalists emphasized that the initial purpose of the platform is to raise capital from investors.