Cryptocurrency Lender Celsius Says He is Looking for Options
Cryptocurrency lender Celsius says he is looking for options on Thursday. Earlier this month, Celsius frozen withdrawals and remittances due to “extreme” market conditions, preventing 1.7 million customers from redeeming their assets. A company in Hoboken, New Jersey, hired a restructuring consultant from consulting firm Alvarez & Marsal to advise on possible bankruptcy filings.
The digital asset market has become extremely volatile in recent months as investors dump risky assets in fear that aggressive rate hikes to curb stubborn inflation could put the economy in recession.
The European Union has agreed on groundbreaking rules to regulate crypto assets, EU lawmakers said Thursday, as Bitcoin‘s defeat puts pressure on authorities to curb the sector.
Cryptocurrencies have lost more than $ 400 billion since the collapse of TerraUSD, the leading stablecoin fixed to the US dollar in May. Bitcoin fell another 6% to $ 18,866.77 at the end of Thursday, down more than 70% from its peak in November last year.
Like banks, Celsius has blockchain technology that collects cryptocurrency deposits from retail customers and provides services ranging from traditional non-financial lending to insurance, including “decentralized finance” or DeFi.
Sectors invested in the equivalent of the retail crypto market, including the sites used. Celsius promised huge profits to retail customers, sometimes as much as 19% annually. The temptation of great profits has led private investors to allocate assets to Celsius and similar platforms.