Celsius hired lawyers to conduct restructuring

This move is intended to address the freezing of the platform’s customers’ accounts because of the fall of the cryptocurrency market

15.06.2022 - 08:05

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What’s new? Crypto lending platform Celsius has hired lawyers to restructure the company following the freezing of its customers’ accounts. Law firm Akin Gump Strauss Hauer & Feld LLP has become a partner of Celsius. This is reported by The Wall Street Journal, citing its own sources.

News on the WSJ website

Celsius situation. On June 13, Celsius suspended withdrawals, exchanges, and transfers between accounts. According to a statement on the company’s blog, the decision was taken “due to extreme market conditions.” At the same time, representatives of the Nexo crypto lending platform offered to buy from Celsius part or all of the eligible outstanding collateralized loan receivables.

According to the WSJ sources, Celsius is exploring various options to address the account freezes, including raising funding from investors as well as a financial restructuring of the company. Representatives of Celsius and law firm Akin Gump have so far refrained from commenting to the WSJ.

Celsius is a DeFi banking platform for lending and staking cryptocurrencies. The project was founded in 2017 by Alex Mashinsky and Daniel Leon. The platform also has a cryptocurrency wallet called Celsius Wallet and the native token CEL. Following the freezing of funds, the price of the asset was dropping by more than 50%. However, as of June 15, 07:40 UTC, the token is trading at $0,509, having gained 58,93% in 24 hours, according to Binance.

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