Celsius Consults Restructuring Attorneys Over Financial Difficulties: Reports

15-Jun-2022 By: Somesh Gaur

Celsius Consults Restructuring Attorneys Over Financial Difficulties: Reports

Following the rumors and conjecture surrounding the crypto lending firm Celsius, an American media outlet reports that the company is apparently employing restructuring attorneys, citing "people familiar with the situation." Hiring restructuring and insolvency attorneys are generally one of the first steps in resolving a company's financial difficulties by aiming to prevent insolvency.

As CoinGabbar earlier reported, the lending platform Celsius shut off particular activities including withdrawals, swaps, and account transfers on June 13, 2022. Customers are still unable to use such services, according to a recent article in a local newspaper, and Celsius may be seeking assistance from a restructuring law firm.

According to the sources, the crypto corporation may be working with Akin Gump Strauss Hauer & Feld LLP, a bankruptcy and restructuring law firm. Celsius is aiming to acquire aid from investors first, according to sources. "One of the persons familiar with the subject indicated that Celsius is first seeking prospective funding possibilities from investors, but it is also considering other strategic choices, including a financial restructuring," sources reported.

The alleged collapse of Celsius has cast a pall over the whole crypto sector, as players continue to clean up the mess left by the Terra blockchain debacle. Speculators estimate that about $2 billion in BTC is linked to Celsius accounts and loans. Even after the Terra LUNA and UST debacles, the business claimed to handle around $11 billion in total.

In addition, the company's token celsius network (CEL) is rated 130 out of 13,417 crypto assets and is down 12.5 percent versus the US dollar this week.

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