American-Israeli Crypto Lender Celsius Faces Financial Crisis
American-Israeli crypto lender Celsius recently laid off approximately 150 employees as it grapples with a financial crisis that led to the suspension of customer withdrawals. The company, which has around 650 staff members listed on LinkedIn, including executives, witnessed 23% of its workforce being affected by the layoffs.
Challenges and Uncertainty
The layoffs at Celsius come at a time of significant uncertainty for the company, with concerns about possible insolvency looming. In response to the crisis in June, the company temporarily halted withdrawals, citing “extreme market conditions.” Since then, Celsius has brought in restructuring specialists and is actively exploring options to safeguard and preserve its assets following the turmoil experienced in mid-June.
Investor Interest and Market Response
Reports suggest that Goldman Sachs is leading a $2 billion fundraising round from investors to acquire Celsius’s distressed assets. However, crypto exchange FTX reportedly declined a deal to purchase the lender after conducting a financial assessment. This development is part of a broader trend in the crypto industry, with various firms, including Coinbase, Bybit, Huobi, and Banxa, reducing their workforce in response to challenging market conditions.
Market Performance
Despite the challenges faced by Celsius, the prices of its CEL tokens surged by 15% in the past 24 hours, as indicated by CoinGecko data.
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