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The Wall Street Journal: Financial platform Celsius prepares for possible bankruptcy; BlockFi to raise deposit rates starting in July

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The Wall Street Journal: Financial platform Celsius prepares for possible bankruptcy; BlockFi to raise deposit rates starting in July

The well-known cryptocurrency financial platform Celsius announced the suspension of platform users' withdrawals, redemptions, and transfers on June 12. CEO Alex Mashinsky only made a spiritual appeal, and negative news about Celsius has been rampant. On June 25, The Wall Street Journal reported that sources revealed Celsius has hired restructuring consultants Alvarez & Marsal to provide advice on a possible bankruptcy filing.

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The well-known cryptocurrency financial platform Celsius announced the suspension of user withdrawals, redemptions, and transfers on 6/12. CEO Alex Mashinsky only made a spiritual appeal, and negative news about Celsius has been rampant. On 6/25, the Wall Street Journal reported that sources revealed Celsius has hired Alvarez & Marsal as restructuring advisors to provide advice on a potential bankruptcy filing.

Furthermore, there have been reports from foreign media that Celsius has engaged Citigroup as an advisor, and rumors that Goldman Sachs is interested in acquiring Celsius assets at a significant discount. However, these have not been confirmed by Celsius, Citigroup, or Goldman Sachs. Celsius last made a public announcement on 6/19.

On the other hand, the financial platform BlockFi announced it will increase deposit rates and reduce withdrawal fees starting July 1, but will cancel the monthly free withdrawal policy. BlockFi is defying the trend by giving bonuses to users, explaining that their profits come from actual lending operations. According to reports, the exchange FTX is also in talks with BlockFi for investment.