Amid the ongoing insolvency risk, crypto lender Celsius has hired restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
See related article: CEL down over 50% since Celsius Network’s withdrawal freeze
- Celsius is exploring financing options from investors and other strategic alternatives like financial restructuring, the WSJ reported.
- On June 13, Celsius halted all withdrawals and transfers citing “extreme market conditions.”
- Celsius, which offered yields on customer deposits, managed over US$11.8 billion in assets as of May 17, 2022, from 1.7 million users, according to its website.
- The U.S. crypto legislation introduced last week aims to protect investors in situations where cryptocurrency exchanges go bust by ensuring their assets are held separately.
See related article: SEC scrutinizing crypto lending by Celsius, Gemini, Voyager: reports