© Reuters
Investing.com – Against the backdrop of the troubles faced by cryptocurrency lending firm Celsius Network, it appears investors would be unwilling to provide additional funds to bail the platform out of its troubles.
For example, Caisse de depot et placement du Quebec, a Canadian fund, and growth capital firm WestCap Group, which led Celsius’ Series B funding round last year that raised $75 million, could refrain from bringing in more funds to help the struggling cryptocurrency lender.
Otherwise, current investors would be waiting for either an acquisition of Celsius or a restructuring of the platform. Celsius finds itself insolvent and faces a liquidity crisis. Onchain data showed that the platform held a large amount of staked ether (stETH) today decoupled from and depleted in liquidity.
The next steps for Celsius
Following the preferences of its shareholders, Celsius Network hired restructuring lawyers to find a solution. In parallel, rival lending platform Nexo revealed that it was looking to acquire Celsius’ qualifying assets.
Meanwhile, securities regulators in Texas, Alabama, New Jersey, Kentucky and Washington are investigating the company’s decision to suspend withdrawals.