Banking giant Goldman Sachs is raising $2 billion to buy up distressed assets from crypto lender Celsius.
In the event of a bankruptcy filing, the proposed deal would allow investors to buy up Celsius’ assets at a hugely discounted price.
The news was brought forth by people familiar with the matter. This proposition further deepens Goldman Sachs’ crypto standing, who has been looking into Web3 funds especially funds of distressed assets.
The firm also sanctioned a bitcoin-backed loan to Coinbase earlier this year and is currently in talks with FTX to integrate some aspects of its derivatives trading business.
Celsius, on the other hand, has been having a rough time since the market crashed. The crypto lender paused withdrawals about two weeks ago and is facing liquidity issues.
Celsius has hired attorneys from the Akin Gump Strauss Hauer & Feld LLP to advise on potential remedies to its escalating financial issues.
Competitors are taking advantage of this situation with Nexo publicly offering to buy out any remaining qualifying assets from Celsius.