Virtual Currency Lending Platform Celsius, the 'Second Terra,' Ultimately Prepares for Bankruptcy Filing

[Asia Economy Reporter Myung-hwan Lee] Foreign media reports have emerged that the cryptocurrency lending platform Celsius, which recently shocked the market by announcing a halt to withdrawals, is preparing to file for bankruptcy.

The Wall Street Journal (WSJ) reported on the 24th (local time) that Celsius has hired restructuring consultants from Alvarez & Marsal amid the recent financial market conditions that have impacted the cryptocurrency market.

Already, on the 12th, amid the continued plunge in cryptocurrency prices, Celsius announced it would "suspend all withdrawals, swaps, and transfers between accounts due to extreme market conditions," halting all such transactions. Since it has not announced when withdrawal services will resume, this is interpreted as preparation for bankruptcy proceedings.

Cryptocurrency specialized media CoinDesk also reported the trend toward Celsius filing for bankruptcy. CoinDesk stated that global investment bank Goldman Sachs plans to raise $2 billion (approximately 2.592 trillion KRW) from investors to purchase Celsius's distressed assets. They are preparing to buy Celsius's assets, which are undergoing restructuring, at a bargain price. As of last month, Celsius's assets amounted to $11.8 billion (approximately 15 trillion KRW).

Founded by American entrepreneur Alex Mashinsky and others, the company had attracted 1.7 million depositors by promising interest rates in the 18% range for cryptocurrency deposits. Celsius's halt on withdrawals has caused a shock to the cryptocurrency market following the TerraUSD (UST) and Luna crash incidents.