Citigroup bank is reportedly advising the crypto lender after freezing withdrawals on Monday. Meanwhile, the SEC is keeping an eye on things.
- Celsius seeks advice from financial giant Citigroup.
- After retreat pause, U.S. regulators watch closely.
- Layoffs and insolvency rumors generate fears in the market.
The cryptocurrency lending service, Celsius The company is apparently seeking support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. from a reputable financial institution after announcing a pause in its withdrawals.
As reported byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain., Celsius would be seeking advice from the financial giant Citigroup based in New York, to evaluate possible solutions to its alleged insolvency problem. On Sunday, the cryptocurrency lending platform informed its customers that it was pausing withdrawals, exchanges and transfers due to ” extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “.
Celsius ha enfrentado inconvenientes para cumplir con los retiros de sus clientes en los últimos días, lo que ha motivado rumores de que la firma enfrenta problemas de insolvencia; aunque, en el pasado, la plataforma había negado una crisis de liquidez.
Celsius Asks Citigroup for Advice
According to today’s report, Celsius ha contracted to Citigroup en “ advisory capacity “sources familiar with the matter toldThe Block. Sin embargo, no significa que el banco vaya a rescatar a Celsius de su problema de liquidez. “ It’s not like Citi is going to give Celsius money off its balance sheet. “, assured one of the people with knowledge in the matter.
The publication noted that Citigroup would be advising the crypto firm on options of ” potential funding “ as well as on offers such as that of its rival Nexo which expressed an interest in acquiring the portfolio of assets of Celsius.
Shortly after the announcement of the Celsius Sunday, Nexo offered to buy some of the platform’s assets. While he didn’t detail a figure, he said he was particularly interested in acquiring its “ secured loan portfolio a collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. ”.
According toThe BlockThis is not the first time that the banking giant and Celsius collaborate. Citing statements from sources, the report advanced that Citi had previously advised the platform a place to buy, sell and store cryptocurrency on the commercial and IPO plans of its mining subsidiary, Celsius Mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. which in May filed with U.S. regulators with plans to go public.
On the other hand, Citi is not the only one the lender has approached for help with her current problem. According to a report in Wall Street Journal published on Tuesday, Celsius also hired legal experts of restructuring of the law firm Akin Gump Strauss Hauer & Feld LLP to advise you on possible solutions.
Celsius has not provided details about these collaborations, nor has it advanced any plans for the platform since it suddenly paused withdrawals earlier this week. Instead, he said he would share information when appropriate and, in a tweet Tuesday, he assured that he was “ working 24 hours a day for our community “.
Regulators don’t look away
Meanwhile, U.S. watchdogs are keeping a close refers to the closing price; similar to the same term used in stock trading. eye on the crypto-lender after the withdrawal pause. According to another separate report fromThe BlockU.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) Chairman Gary Gensler made some comments that suggest the regulator is aware of the problems it faces. Celsius .
“ Many cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. lending platforms actually own your asset in some joint omnibus account. “Gensler told an audience at the Wall Street Journal but not to mention Celsius . “ Then you see things like this weekend and Monday, where there’s a crypto exchange, a crypto lending platform, that said ‘You can’t withdraw. Not now.’ “.
This isn’t the first time the SEC chairman has spoken out about the risks of cryptocurrency platforms. Agencies have also been particularly sharp on cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. services and products because they view them as unregistered securities. Last year, the SEC put the brakes on efforts to Coinbase is an American company that operates a cryptocurrency exchange platform. to launch Lend a crypto-loan product.
Also, other services such as BlockFi y Nexo have also faced scrutiny from U.S. regulators. First, it agreed to pay a $100 million fine to the SEC and other local enforcement agencies for non-compliance with securities law. Nexo y Celsius The New York Attorney General’s Office, meanwhile, had already come under scrutiny by the New York Attorney General last year.
News further shakes the market
The liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. problems for Celsius which advertised itself as a native cryptocurrency bank with high-interest savings accounts and low-interest loans, come amid a battered market. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. has plunged to USD $20,000 levels as the global cryptocurrency market capitalization sees two years’ worth of gains gains refer to an increase in value or profit. erased.
In addition to the problems of Celsius the reputed cryptocurrency-focused hedge fund is rumored, Three Arrows Capital capital is most commonly defined as the large sum of money you would use to invest.The news, which comes on top of announcements of layoffs on several exchanges, is undoubtedly raising new fears in an industry already shaken by price declines. The news, which comes on top of announcements of layoffs from several exchanges, is undoubtedly raising new fears in a sector already shaken by price declines.
The reports also come one month after the historic implosion of Earth The issue had already caught the attention of regulators and legislators, bringing them to the edge of their seats over the need for stricter regulation of the sector.
Article by Hannah Estefania Perez / DiarioBitcoin
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