A well-known crypto lending firm Celsius Network has hired ‘restructuring lawyers’ amid the current crypto recession, which saw the biggest cryptocurrency Bitcoin (BTC) lose nearly 40% in the past week.
Celsius has reportedly hired lawyers from a law firm called Akin Gump Strauss Hauer & Feld LLP to advise on the way forward as its financial problems pile up due to the collapse in crypto market prices.
The restructuring lawyers’ appointment comes days after the cryptocurrency lender told its users that it was halting withdrawals, swaps and internal transfers due to extreme market volatility.
cel price pump and dump
Interestingly, CEL, the native token of the Celsius network, is among the cryptocurrencies that remain green today. At the time of writing, the price of CEL is up almost 51% in the past 24 hours.
However, CEL pumped above $1.1 yesterday before dumping at the current price of $0.4819. There are still no concrete reasons why CEL is on the rise, especially since activities on the Celsius network have been halted indefinitely.
Celsius considering options amid bankruptcy rumours
While Celsius is said to be looking for financial solutions from investors, it is also exploring other options, including a possible financial restructuring.
Currently, Celsius lends customer deposits to other users and earns some interest in return. The company manages over $11.8 billion in crypto assets and offers a high percentage return in the form of 18.63% crypto deposits.
Celsius’ move came as lawmakers around the world began to explore what would happen if crypto platforms fail, especially now that cryptocurrencies have lost a lot of value. A bipartisan pair of US senators last week proposed a bill aimed at protecting investors in the event that a cryptocurrency exchange files for bankruptcy. The Bill seeks to ensure that digital assets of customers are kept in a separate account from the company’s account.