Investors in the Celsius Network are unlikely to provide more financing to bail out the struggling crypto lender.
A major Canadian pension fund, Caisse de Đépôt et position du Québec, and WestCap, a growth equity firm founded by technology investor Laurence Tosi, a former chief financial officer of Airbnb, are not expected. will put more money to help lenders on Celsius, the people said. WestCap and Caisse de Dépôt last year led a Series B funding round, raising $750 million for degrees Celsius and valuing the crypto startup at more than $3 billion.
“Few people feel okay about everything,” said one person with knowledge of the discussions between Celsius and its investors. “There is more risk in this than would be expected,” he said.
Celsius, the crypto lending platform, spooked crypto investors on June 12 when it halted all customer withdrawals, swaps and transfers. The company receives money, sends cryptocurrency from customers and lends it to other users for profit. But the value of cryptocurrencies has tumbled and lenders are finding it difficult to meet their obligations to depositors and other creditors.
Celsius has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld to help resolve its growing financial problems and consider options including new investment or financial restructuring.
Existing investors seem willing to back and let another company attempt to acquire the exchange or simply let the business restructure, according to another person close in an attempt to save Celsius’ business.