Following the rumors and speculation surrounding the crypto lending firm Celsius, a Wall Street Journal report, quoting “people familiar with the matter,” explains that the company is reportedly hiring restructuring lawyers. Basically, hiring restructuring and insolvency attorneys is one of the first stages of fixing a company’s financial hardship by essentially attempting to avoid insolvency.
On June 13, 2022, Bitcoin.com News reported on the lending platform Celsius shutting down specific operations such as withdrawals, swaps, and account transfers. Those operations are still not available to Celsius customers, and a recent report published by the Wall Street Journal (WSJ) explains that Celsius may be seeking help from a restructuring law firm.
The report notes that the crypto company may be leveraging the bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP. The WSJ author Alexander Gladstone details that Celsius is attempting to get help from investors first. “Celsius is first looking for possible financing options from investors but is also exploring other strategic alternatives, including a financial restructuring, one of the people familiar with the matter said,” Gladstone wrote.
The rumored Celsius insolvency has arguably put a dark cloud over the entire crypto industry, as participants are still cleaning up the mess left behind by the Terra blockchain fiasco. Speculators believe there’s close to $2 billion worth of bitcoin (BTC) tied up with Celsius accounts and loans. Overall, the firm still claimed to manage roughly $11 billion even after the Terra LUNA and UST fallout.
Gladstone’s report said that he reached out to the law firm Akin Gump and the company “had no immediate comment,” and Celsius did not respond to Gladstone’s questions either. Furthermore, the company’s token celsius network (CEL) is ranked 130 out of 13,417 crypto assets, and it is down 12.5% this week against the U.S. dollar.
What do you think about the report that says Celsius may be looking into hiring a restructuring law firm or seeking help from investors? Let us know what you think about this subject in the comments section below.