Following rumors and speculation surrounding crypto lender Celsius, a Wall Street Journal report cites “people familiar with the matter” and reports that the company has hired a restructuring attorney explains that the company has hired a restructuring attorney. Essentially, hiring a restructuring and bankruptcy attorney is essentially one of the first steps in fixing a company’s financial woes by trying to avoid bankruptcy.
Celsius is reportedly seeking help from either investors or a well-known restructuring law firm
On June 13, 2022, Bitcoin.com News reported that lending platform Celsius has suspended certain operations, including withdrawals, swaps, and account transfers. Those operations are still not available to Celsius customers, and a recentreportpublished by the Wall Street Journal (WSJ) explained that Celsius may be seeking help from a restructuring law firm.
The
report notes that crypto firms may be utilizing bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP.WSJ author Alexander Gladstone recounts that Celsior is first trying to get help from investors. Gladstone writes, “Celsior is first exploring the possibility of financing from investors, but is also exploring other strategic options, including financial restructuring, according to one person familiar with the matter.”
Celsior’s rumored insolvency has undoubtedly cast a pall over the entire crypto industry as participants are still cleaning up the mess left by the Terra blockchain fiasco. Speculators believe there is nearly $2 billion worth of bitcoin (BTC) tied up in Celsior’s accounts and loans. Overall, the company claims to still manage roughly $11 billion, even after the fallout from Terra LUNA and UST.
According to Gladstone’s report, when contacted by law firm Akin Gump, the company was “not immediately available for comment,” and Celsius did not respond to Gladstone’s questions. Additionally, the company’s token Celsius network (CEL), which ranks 130 out of 13,417 crypto assets, is down 12.5% this week against the US dollar.
What do you think about reports that Celsius may be considering hiring a restructuring law firm or seeking help from investors? Let us know what you think about this subject in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Photo credit: Artemenko Valentyn