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Celsius hires lawyers to restructure business after freezing withdrawals - WSJ

Published 06/14/2022, 09:10 PM
Updated 06/14/2022, 09:16 PM
© Reuters. Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) - Crypto lender Celsius Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems, the Wall Street Journal reported https://on.wsj.com/3zDL82U on Tuesday.

Celsius is first looking for possible financing options from investors, but is also exploring other strategic alternatives, including a financial restructuring, the newspaper said, citing people familiar with the matter.

Celsius Network and Akin Gump did not immediately respond to Reuters' requests for comment.

The crypto lender said on Sunday it was pausing all swaps, transfers and withdrawals between accounts due to extreme market conditions.

The Celsius move triggered a slide across cryptocurrencies, with their value dropping below $1 trillion on Monday for the first time since January 2021.

As of May 17, Celsius had $11.8 billion in assets, its website showed, down by more than half from October, and had processed a total of $8.2 billion worth of loans.

Rival crypto lender Nexo said on Monday it had offered to buy Celsius' outstanding assets.

Latest comments

People might get 10 cents on the dollar out of it. But realistically, I think everyone who had given them coins will lose everything.
They are done.
Middle of the end fir crypto
Middle of the end for crypto. For all the “benefits” crypto has promised none have materialized. People are going to get burned and it will spill over into other parts of the financial markets. I am concerned about these financial assets and the health of our financial knowlwedge
Still paused...Shame!
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