According to the Wall Street Journal, Celsius Network LLC has recruited restructuring advisors from the advising firm Alvarez & Marsal to advise on a potential bankruptcy filing as the crypto lending platform fights with the recent fall of digital currencies.
Due to significant market volatility, Celsius, which reported $11.8 billion in assets as of May and 1.7 million customers, suspended withdrawals, swaps, and transfers earlier this month. In October, the value of its assets was around $25 billion. Last week, Celsius retained the legal services of Akin Gump Strauss Hauer & Feld LLP to assist with potential financial solutions.
Steady lads https://t.co/5YAdmq5kt8
— Ben McKenzie (@ben_mckenzie) June 24, 2022
In a June 20 blog post, the Celsius team informed the cryptocurrency community of the firm’s state, noting that their primary goal was to maintain the liquidity and operations of the platform.
The Celsius team warned the cryptocurrency community that stabilising the platform would take time and that they would be stopping all Twitter spaces and AMAs (ask-me-anything) sessions to concentrate on managing these unprecedented obstacles and fulfilling their community commitments.
Celsius has declared its commitment to fulfilling its obligations. The Celsius team banned withdrawals, swaps, and transfers on June 13, citing current market circumstances as the primary cause. They said acting in the community’s best interest is their first concern. In service of this pledge and under the Celsius risk management system, the firm has activated a provision in its Terms of Service to enable this procedure. Celsius had tremendous assets, and they were carefully trying to fulfil our duties.