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Celsius Lays Off Nearly A Quarter Of Its Staff

  • As of May 17, 2022, Celsius had processed $8.2 billion in loans and had $11.8 billion worth of digital assets.

A Calcalist report claims that crypto lending firm, Celsius, would lay off 150 staff as it continues with its financial crisis. The crisis saw the firm pause withdrawals three weeks ago. Laying off 150 staff (including those outside the US) shows that the company is reducing its staff strength by 23%.

Celsius’ LinkedIn profile shows that it has nearly 650 employees. On June 13, the crypto lender announced a temporary halt on withdrawals, blaming harsh market conditions. However, many industry analysts were worried that the company might be worried about having insolvency issues.

Celsius Fights On

A July 1 blog post by Celsius states that the company is working as fast as possible to have steady liquidity and stable operations. Then, it can provide its community with more details.

“Despite our challenges, we are still making decisions that best suit our community and clients,” the company noted.

The blog post adds that the company is exploring various options and will keep taking the best steps to protect and preserve its current assets. A restructuring of liabilities and the pursuit of strategic transactions are some of the options the company is exploring.

Due to the complexity of the crisis, it will take time for the company to exhaust all available options. However, the Celsius team restates that it is exploring these options alongside professionals from various sectors.

Notably, the crypto lending firm noted that it would only share updates with its customers when appropriate. Daniel Leon, Nuke Goldstein, and Alex Mashinksy co-founder Celsius five years ago. all three of them are still part of the Celsius executive team

The firm reached a $3 billion valuation following a $750 million fundraise late last year. As of May 17, 2022, Celsius had processed $8.2 billion in loans. Additionally, the company had $11.8 billion worth of assets.

Per multiple reports, Goldman Sachs is leading a team of investors to raise $2 billion and purchase the distressed assets of the crypto lending firm. However, sources say that crypto FTX isn’t planning to purchase the crypto firm based on the poor state of Celsius’ finances.

Celsius is the latest crypto company to reduce its staff due to the current crypto market downturn. Coinbase sacked more than 1,100 staff last month. Many others like Banxa, Huobi, and Bybit took similar steps last month. According to Coingecko data, Celsius native token (CEL) gained 15 percent in the last 24 hours.

Rebecca Davidson Verified

Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”

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