Cryptocurrency landing platform Celsius has hired financial conglomerate Citigroup to find a possible solution to the problems that arose after the freezing of clients’ assets, The Block has reported.
Celsius suspended on June 13 withdrawals and operations on the platform “due to extreme market conditions.” According to experts, the real reason for what happened is a “liquidity crisis,” due to which the company cannot make payments to customers.
Celsius has strengthened its debt positions in three main areas over the following days: MakerDAO, Aave and Compound. The company apparently spent a significant part of its funds for these purposes.
cc The conglomerate “advises Celsius on possible financing options”, but will not provide the company with funds from its balance sheet.