Crypto lending platform Celsius Network (CEL) has engaged restructuring lawyers from Akin Gump Strauss Hauer & Feld to find possible solutions to the firm’s financial woes.
The firm is reportedly exploring other strategic options, such as financial restructuring, in addition to efforts to solve its current problems. The report also states that Celsius is trying to find investors who will be able to provide financing options for the crypto lending company.
Celsius halted withdrawals from its platform on Monday, citing extreme market conditions. Amid the withdrawal freeze, the firm invested about $247 million in wrapped bitcoin (wBTC) from liquidity protocol Aave and shipped it to the FTX exchange. In addition to its wBTC, the firm has also sent $74.5 million in Ether (ETH) to FTX.
As rumors of Celsius bankruptcy spread, crypto exchange Nexo has gotten its hands on the lending platform. The crypto firm recently told Cointelegraph that Nexo, along with its partners and affiliates, has been able to obtain part or all of Celsius’ outstanding “collateralized loans receivable.”
related: Celsius (CEL) price rose 600%+, but analysts cited exchange error and a massive short squeeze
To allay holders’ fears amid the Celsius situation, stablecoin issuer Tether (USDT) has announced that current events surrounding the lending platform have “no impact” on Tether’s reserves. According to Tether, while they have an investment in Celsius, it has no effect on the stability of its reserves. The announcement also highlighted that the Celsius position was a result of “market volatility”.
Meanwhile, cryptocurrency exchange Binance also halted BTC withdrawals on its platform on Monday, just as the Celsius halving began. However, Binance CEO Changpeng Zhao assured holders that their funds are safe and the exchange will open withdrawals soon. On the same day, the crypto exchange resumed withdrawals.