Celsius hires new restructuring consultants

The platform is also exploring ways of filing for bankruptcy

11.07.2022 - 10:30

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2 min

What’s new? Crypto lending platform Celsius has hired new lawyers to advise on possible restructuring or bankruptcy filing options. The law firm Kirkland & Ellis will replace Akin Gump Strauss Hauer & Feld, whose experts Celsius hired in June after freezing customers’ funds for a similar purpose. This is reported by The Wall Street Journal, citing sources.

The Wall Street Journal’s material

What is known about the company? Experts of the law firm Kirkland & Ellis also represent the cryptocurrency broker Voyager Digital in the bankruptcy case that was filed in a New York court in early July. According to preliminary data, Voyager has between $1 billion and $10 billion in assets, and the number of creditors exceeds 100 000.

Celsius situation. On June 16, the company hired experts from Citigroup’s investment bank to find new sources of financing. Crypto exchange FTX refused to buy the platform after discovering a $2 billion discrepancy in its balance sheet. However, investment bank Goldman Sachs announced plans to raise a similar amount to buy back Celsius’ assets.

For more details on how Celsius lost its customers’ hundreds of millions of dollars on high-risk schemes, see the GetBlock Magazine editorial’s feature.

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