According to a report from Wall Street Journal, Crypto Lending Firm Celsius has employed restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP amid ongoing insolvency risk.
Celsius Network hired attorneys to seek assistance and advice on possible solutions to its current financial troubles.
Last week Celsius told users that it was pausing all withdrawals, swaps, and transfers between accounts because of “extreme market conditions.” It stated that the move to stop the services was meant to “stabilize liquidity and operations.”
Celsius said in a blogpost, “But we believe that our decision to pause withdrawals, Swap, and transfers between accounts is the most responsible action we can take to protect our community. We are working with a singular focus: to protect and preserve assets to meet our customer obligations.”
“Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible. There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” Celsius Network affirmed.
Amid finding a solution to its financial trouble, as reported by WSJ, Celsius is first looking for possible financing options from investors. However, it is also exploring other strategic alternatives, including financial restructuring, one of the people familiar with the matter said.
Celsius lends out its 1.7 million users’ crypto deposits to other users to earn a return from the interest paid. According to its website, the company managed $11.8 billion in assets while offering an annual yield of up to 18.63% on cryptocurrency deposits as of May 17, 2022.
Valued at $3.5 billion after raising $750 million in a Series B funding round last November, Celsius sent shockwaves throughout the crypto industry when it announced the suspension of all withdrawals, swaps, and transfers on its platform on Sunday.
Celsius affirms its Users
The firm took to Twitter on Tuesday to affirm its users about the efforts being made by the company to avert this situation from dragging further. It said it is “working as quickly as possible and will share information as and when it becomes appropriate.”
The company’s token, CEL, fell massively by 51% in value, dropping to $0.195 last week after the announcement, while it was trading at nearly $1 a month ago. As of today, Wednesday,15:00 GMT, according to Coinmarketcap, Celsius has a 96.83% change in price to yesterday, from $0.3187 to $0.6503 while topping $1.10 before reverting to $0.49.
