Media sites are flooded with various reports on the potential next measures Celsius may take, including restructuring, insolvency, and buyouts.
In anticipation of the possibility of bankruptcy, the cryptocurrency lending platform Celsius Network is said to have hired consultants from a management consulting firm.
The Wall Street Journal reported on Friday that Celsius recruited an unspecified number of restructuring advisors from the company Alvarez & Marsal to counsel the platform on potentially declaring bankruptcy. The story came after one on June 14 that said Celsius had employed attorneys in an effort to restructure the business in light of its financial difficulties.
Following the platform's decision to halt withdrawals, state authorities are now focused on Celsius. Regulatory authorities in Alabama, Kentucky, New Jersey, Texas, and Washington were "looking at the issue concerning the frozen accounts" at Celsius, according to Joseph Rotunda, director of enforcement for the Texas State Securities Board, on June 16.
Simon Dixon, a Celsius investor and co-founder of BnkToThe Future, put up a recovery strategy on June 20 that called for the cryptocurrency lending site to adopt a "financial innovation" strategy similar to what Bitfinex did in 2016. Following a $700 million Series B investment deal in November 2021, Celsius had a $3.5 valuation, albeit this number may have decreased given the recent market collapse.
