Celsius is said to be seeking legal counsel on reorganization.
Celsius is said to have hired lawyers to help the firm solve its financial problems.
Celsius Network (CEL), a cryptocurrency lending platform, has hired restructuring attorneys from Akin Gump Strauss Hauer & Feld to help with the company’s financial troubles.
Apart from attempting to resolve its current challenges, the company is allegedly considering additional strategic options, such as a financial reorganization. Celsius is also looking for investors that can help the crypto loan firm with money, according to the article.
Celsius halted withdrawals from its site on Monday, citing “extreme market circumstances.” The business has unstaked about $247 million in Wrapped Bitcoin (wBTC) from liquidity protocol Aave and transmitted it to the FTX exchange during the withdrawal freeze. The company has also contributed $74.5 million in Ether (ETH) to FTX in addition to its wBTC.
As reports of Celsius’ insolvency spread, cryptocurrency exchange Nexo has lent its support to the loan platform. Nexo, together with its partners and affiliates, is entitled to purchase a portion or all of Celsius’ outstanding “collateralized loan receivables,” according to us.
Tether (USDT), the stablecoin issuer, has indicated that the recent circumstances surrounding the lending platform have “no influence” on Tether’s reserves, assuaging holder anxieties. While Tether has an interest in Celsius, it claims that it has no influence on the stability of its reserves. The predicament at Celsius is partly a result of “market instability,” according to the release.
Meanwhile, on Monday, just as the Celsius delay began, crypto exchange Binance halted BTC withdrawals on its site. Binance CEO Changpeng Zhao, on the other hand, promised investors that their assets were safe and that withdrawals will be available soon. Withdrawals were resumed on the same day by the crypto exchange.
