Celsius, a struggling crypto firm, has fired 150 workers. According to the latest reports, this represents a quarter of its staff. According to CalCalistech.com’s report, those dismissed include people living in Israel, where the business has a presence. The firm, which has offices in Israel and the United States, has neither confirmed nor denied this. The 150 workers laid off makeup 25% of the company’s staff.
Celsius Network reportedly lays off 150 employees
On June 13, Celsius’s platform froze withdrawals owing to liquidity concerns. Several other cryptocurrency firms have followed suit since then, with the majority of them having ties to Celsius. The announcement comes two days after the crypto lender announced that it was working to stabilize liquidity and operations. According to Calcalist, the firm did not respond to requests for comment.
The entity 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.
Celsius Network
Celsius Network reportedly terminated around a dozen employees over the weekend, nearly two weeks after hiring Restructuring Advisors from law firm Akin Gump Strauss Hauer & Feld LLP. The decision was designed to assist Celsius Network in exploring possible solutions for its current financial difficulties.
In addition, the Celsius Network team introduced three proposals to rebuild the lending platform in early June. The Future Capital reported that they had been ‘engaged by Celsius to administer the community portion of their $750m Series ‘B’ funding round.’
According to the Bnk To The Future Capital team, which owns 5% of Celsius Network shares, a community is required to find permanent solutions for the lending platform. As a result, the following three ideas were put forth:
The creation of a new platform, the implementation of a system upgrade, and the recovery of assets. This will allow depositors to profit from any revival via financial engineering. Second, the most important Bitcoin whales agreed to create a pool that would co-invest with community members. This is comparable to how Bitfinex recovered after the 2016 hack. Finally, a feasible plan for creating a new business and staff that could rebuild and return money to depositors.
The lack of new information from the lender has caused depositors’ confidence to plummet. According to a recent Wall Street Journal article, many of these investors have placed their life savings in Celsius.
There have been no updates from Celsius for three weeks, and many people are concerned that they will never be able to retrieve their funds. The firm has engaged Alvarez & Marsal insolvency consultants since it halted withdrawals. It also picked Citigroup as a financial adviser.
However, that hasn’t translated into any real action yet. According to reports, several businesses are considering acquiring its assets, including competing for NEXO and leading financial institution Goldman Sachs. For that purpose, Goldman Sachs has raised $2 billion in funding.
According to reports, crypto exchange FTX had been in talks with Celsius about financial aid. However, after seeing a $2 billion deficit in Celsius’s finances, FTX withdrew its offer. While the firm has made no announcements, some investors appear to be growing weary.
Hard times in crypto escalate
The crypto industry is dealing with problems that haven’t been seen before. One of the issues surrounding going public is that it is a new concept for many people. Public firms are often misunderstood, especially among bitcoin and cryptocurrency investors. It’s not particularly surprising. The whole thing is designed to appear complex and perplexing so that Wall Street investment bankers, attorneys, and insiders will feel smart.
Regulators have, however, chosen not to be sidetracked by these difficulties. They have opted to regulate the crypto market in the same way they would a conventional business.
The regulatory pillar of the US-UK Financial Innovation Partnership was hosted by Her Majesty’s Treasury with the US Treasury Department. Both governments recognized the need to collaborate to promote secure innovation and enhance regulatory outcomes for digital assets throughout jurisdictions.
According to the joint statement, top domestic watchdogs such as the SEC, the CFTC, staff from the Bank of England, and the Financial Conduct Authority have all participated in a meeting. The panel discussed recent developments with stablecoins and CBDCs. The document noted that this meeting was a foundation for future dialogues.
Among all the regulatory issues surrounding space, the continuing key role of stablecoins and crypto-asset trading and lending platforms in the digital asset ecosystems – as demonstrated by recent turmoil in the fall of Terra and Celsius – has raised concerns among watchdogs across the world.
According to the statement, the G7 and G20 have also addressed crypto regulations. Both countries are committed to discussing “robust cross-border regulatory cooperation” at future meetings that will focus on providing a clear regulatory framework for stablecoins and cryptocurrency exchanges.
