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Celsius Fires 150 Employees and Depositors Get Worried

Troubled cryptocurrency lender Celsius has let go of 150 people, or almost a fifth of its personnel.

Some of the fired employees are reportedly from Israel, according to the Israeli news outlet Calcalist. The business, which is based in the US but also has offices there and in the UK and Israel, has neither acknowledged nor denied anything.

The announcement was released two days after the crypto lender said on its blog that it was trying to stabilize operations and liquidity. According to Calcalist, the company ignored inquiries for comment.

On June 13, Celsius halted withdrawals from its platform due to liquidity problems. Since then, numerous additional cryptocurrency businesses have imitated it, the most of which have connections to Celsius.

The company stated:

“We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues.”

Depositors who cannot access their funds are losing hope because the lender has not provided any new information. Many of these depositors reportedly have their whole lives’ worth of savings in Celsius, according to a recent Wall Street Journal article.

After three weeks, Celsius had promised to begin withdrawals, but there have been no updates, leaving many customers wondering if they will ever see their money again.

The business has employed restructuring advisors from Alvarez & Marsal after it ceased accepting withdrawals. Additionally, Citigroup was hired to offer financial guidance.

But no actual action has yet resulted from that. According to reports, a number of businesses, including rival lender NEXO and top financial organization Goldman Sachs, are thinking about purchasing its assets. For that reason, Goldman Sachs is said to have raised $2 billion.

In addition, according to insiders with knowledge of the situation, crypto exchange FTX contemplated funding Celsius but decided against it when it discovered a $2 billion cash gap.

Even though the corporation hasn’t made any official announcements, some stockholders seem to be losing patience. BnkToTheFuture just offered a Depositor First solution to keep Celsius alive.

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