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After Restricting Withdrawals, Celsius Employs Attorneys to Reorganize the Company
Celsius Network LLC, a cryptocurrency lender, has retained restructuring lawyers from Akin Gump Strauss Hauer & Feld LLP to assist on potential remedies to its escalating financial troubles.
The Wall Street Journal reported on Tuesday that cryptocurrency lender Celsius Network LLC has recruited restructuring experts from law firm Akin Gump Strauss Hauer & Feld LLP to assist on potential remedies to its escalating financial troubles.
According to the publication, which cited persons familiar with the situation, Celsius is initially seeking for prospective funding possibilities from investors, but it is also considering other strategic options, such as a financial reorganization.
Reuters reached out to Celsius Network and Akin Gump for comment, but neither responded right away.
Due to extraordinary market circumstances, the crypto lender halted all swaps, transfers, and withdrawals between accounts on Sunday.
The action by Celsius caused a sell-off in cryptocurrencies, with their value falling below $1 trillion for the first time since January 2021 on Monday.
Celsius had $11.8 billion in assets as of May 17, down more than half from October, and had processed $8.2 billion in loans, according to its website.
On Monday, rival crypto lender Nexo said that it had made an offer to purchase Celsius' outstanding assets.
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