Crypto Lender Celsius Cuts 150 Jobs Amid Restructuring

Withdrawals are still paused, and the company is laying off staff as it faces a financial crisis.

Bishal Kumar Chanda2 min read
Crypto Lender Celsius Cuts 150 Jobs Amid Restructuring

Crypto lender Celsius announced laying off 150 employees as it battles financial woes that saw it freeze customer withdrawals last month. The firm has about 650 members on LinkedIn, meaning 23% of the company was affected.

The layoffs come amid uncertainty for Celsius as it faces potential insolvency. In June, the crypto lender halted withdrawals citing “extreme market conditions.” Since then, Celsius has hired restructuring specialists and is reportedly exploring options to “preserve and protect assets.”

Meanwhile, investment bank Goldman Sachs is reportedly leading a $2 billion raise from investors to buy Celsius’ distressed assets. However, crypto exchange FTX is said to have passed on a deal to purchase Celsius after examining its finances.

Rival crypto lender Nexo also jumped on the opportunity as soon as Celsius’ financial woes became public last month. But Celsius network didn’t accept Nexo’s offer to buy out some of its distressed assets.

Also, Celsius joined a growing number of crypto firms that are laying off staff amid the bearish market conditions. In fact, Coinbase laid off over 1,100 employees in June, with crypto lender BlockFi letting go 20% of its workforce. Other crypto firms like Bybit, Huobi, and Banxa are also letting go of staff since the past month.

In the last 24 hours, prices of Celsius’s CEL tokens have gone down 6.90%, according to CoinMarketCap data. Meanwhile, the largest crypto, Bitcoin, is currently trading at $20,200, down from its $68,000 peak last November.

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