Following the rumors and speculation surrounding cryptocurrency lending firm Celsius, a Wall Street Journal report, citing “people familiar with the matter,” suggests that the company is reportedly hiring restructuring lawyers. Basically, restructuring and hiring bankruptcy lawyers is essentially one of the first steps in fixing a company’s financial hardship by attempting to avoid bankruptcy.
Report says Celsius is looking for help from investors or a well-known restructuring law firm
On June 13, 2022, Bitcoin.com News reported the closure of specific functions such as withdrawals, swaps and account transfers on lending platform Celsius. Those operations are still not available to Celsius customers, and a recent report published by The Wall Street Journal (WSJ) suggests that Celsius is seeking help from a restructuring law firm.
The report states that the crypto company could take advantage of bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP. WSJ writer Alexander Gladstone pointed out that Celsius is first trying to get help from investors. “Celsius is first looking at potential financing options from investors, but is also exploring other strategic options, including financial restructuring,” Gladstone wrote.
The rumored Celsius bankruptcy has arguably cast a dark cloud over the entire crypto industry, as participants are still cleaning up the mess left by the Terra blockchain fiasco. Speculators believe that there is approximately $2 billion worth of bitcoin (BTC) associated with Celsius accounts and loans. Overall, the firm still claims to have managed approximately $11 billion, even after the collapse of Terra Luna and UST.
Gladstone’s report said they contacted law firm Akin Gump and the company “did not immediately comment,” and Celsius also did not respond to Gladstone’s questions. Furthermore, the company’s token Celsius Network (CEL) is ranked 130 out of 13,417 crypto assets, and is down 12.5% against the US Dollar this week.
What do you think about the report that said Celsius is considering hiring a restructuring law firm or seeking help from investors? Let us know what you think about this topic in the comment section below.
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